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U.S. Commodity Futures Trading Commission Receives More Than 1,500 Comments on Prediction Market Rule

The CFTC closed comments on its prediction market proposal after receiving more than 1,500 submissions, with industry firms backing federal oversight while other respondents urged tougher action on insider trading and unlawful betting.

Fact Check
The claim is strongly supported by multiple independent sources. The CFTC's advance notice of proposed rulemaking on prediction markets (RIN 3038-AF65) is confirmed by both the Federal Register entry and the CFTC's own regulatory page. The 1,500+ comment figure is reported consistently across at least five independent news outlets on May 3-4, 2026, including crypto.news (which directly quotes named industry participants and links to individual CFTC comment letters), bloomingbit.io (citing CoinTelegraph), coinness.com, intellectia.ai, and gncrypto.news. The claim's additional details - industry firms backing federal oversight and respondents urging tougher action on insider trading and unlawful betting - are also directly corroborated by the crypto.news article, which names Kalshi, Polymarket, Andreessen Horowitz, Better Markets, and state gaming regulators. No conflicting evidence was found.
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Summary

The U.S. Commodity Futures Trading Commission has ended the public comment period on its proposed prediction market event contract rule after receiving more than 1,500 submissions. The responses showed continued disagreement over how these products should be regulated. Polymarket and Kalshi supported a unified federal framework, while some participants and state gambling regulators called for stricter enforcement, including stronger action against insider trading and illegal betting. Earlier feedback also included Coinbase’s call for the CFTC to keep prediction markets under existing derivatives rules rather than creating a separate regime.

Terms & Concepts
  • Prediction market event contracts: Tradable contracts tied to the outcome of future events, allowing participants to take positions on whether a specified event will occur.
  • CFTC: The U.S. Commodity Futures Trading Commission, the federal regulator overseeing U.S. derivatives markets, including futures and certain event-based contracts.
  • Derivatives: Financial instruments whose value is based on an underlying asset, index, rate, or event rather than direct ownership.