According to Unfolded, the U.S. Commodity Futures Trading Commission (CFTC) has issued a comprehensive no-action letter exempting prediction market platforms from swap data reporting and record-keeping obligations. This measure applies to Designated Contract Market (DCM)-based prediction market platforms such as Kalshi and Polymarket, and treats standardized exchange-based prediction markets as closer to futures products than swaps. The market evaluates this decision as a measure to lower platform operating costs and alleviate regulatory uncertainty. Furthermore, analysis suggests that the CFTC is re-emphasizing its stance that "prediction markets are subject to federal regulation" amidst recent jurisdictional disputes with several state governments.
