The Commodity Futures Trading Commission (CFTC) plans to strengthen conflict-of-interest rules for exchanges that list prediction markets and for affiliated firms that conduct proprietary trading or market making on those markets when they belong to the same group. The agency is targeting risks that an exchange could favor related companies or use non-public information such as customer orders and positions. Proposed requirements include separation of systems, personnel and offices, formal conflict-of-interest management procedures, and additional obligations for exchanges that have related proprietary trading companies. The move adds to broader U.S. scrutiny of event contract derivatives, which pay out based on real-world outcomes such as elections, policy decisions, economic data, court rulings and geopolitical events. Earlier CFTC enforcement guidance on event contracts did not deem all prediction markets illegal, but signaled closer review of listings, surveillance, market access and insider risks, while crypto group CCI separately commented to the Securities and Exchange Commission on proposed ETF rules covering prediction-market-linked contracts. Together, the actions highlight how compliance, market integrity and group-structure controls are becoming central to how prediction markets and related products develop.