CFTC Grants No-Action Relief to Polymarket, PredictIt, Gemini and LedgerX
According to the CFTC, four platforms are exempt from certain recordkeeping rules under strict conditions, including full collateralization, reflecting a flexible regulatory approach to select markets.
Summary
On December 12, the U.S. Commodity Futures Trading Commission (CFTC) issued no-action letters to Polymarket, PredictIt, Gemini, and LedgerX/MIAX, granting exemptions from certain recordkeeping requirements where contracts are fully collateralized and other conditions are met. This relief applies in specific scenarios and permits these platforms to operate without enforcement of the waived rules, provided they comply with the stipulated terms.
Terms & Concepts
- CFTC no-action letter: A formal statement by the U.S. Commodity Futures Trading Commission indicating it will not take enforcement action against a party for certain regulatory issues if specific conditions are met.
- Swap: A financial derivative in which two parties exchange cash flows or other financial instruments, often used for hedging or speculation.