The Commodity Futures Trading Commission issued a letter lifting the reporting and recordkeeping requirements for event contracts from the platform. The Commission will not pursue exchanges and clearing organizations for non-compliance with these rules.
The reason was regulatory uncertainty: event contracts formally fall under the definition of swapsâthey are based on binary-outcome events. However, in structure, they are closer to futures: standardized terms, exchange trading, and interchangeability. Now, such contracts will be able to report to the CFTC in a simplified format similar to that used for futures.
The list of 19 beneficiaries includes Polymarket US, Kalshi, Gemini Titan, and Bitnomial. Other market participants can apply for inclusion.
Against this backdrop, the conflict between the CFTC and several states continues. The states consider sports betting to be unlicensed gambling, while the CFTC views it as derivative instruments under federal oversight.