On March 12, 2026, the Commodity Futures Trading Commission (CFTC) took steps to further the regulation of prediction markets. The CFTC’s Division of Market Oversight issued a staff advisory to provide its views on the listing and trading of event contracts. The advisory discusses existing regulations that may be applicable to event contracts offered by designated contract markets (DCMs) and the listing of certain event contracts by DCMs (including, as discussed in the advisory, sports-related event contracts). Among other things, the advisory reminds market participants that existing regulations prohibit “misappropriation of confidential information in breach of a pre-existing duty of trust and confidence to the source of the information (commonly known as ‘insider trading’).”

At the same time, the CFTC announced the publication of an Advanced Notice of Proposed Rulemaking (ANPRM) seeking public comment on whether to amend or issue new regulations governing event contract derivatives, which the ANPRM refers to as “prediction markets.” The ANPRM poses wide‑ranging questions, from statutory core principles to the types of event contracts that may be deemed contrary to the public interest, and other topics. The ANPRM presents a meaningful opportunity to help shape the next phase of CFTC policy; thoughtful engagement in the comment process will be critical for anyone with exposure to event‑based derivatives.