The Commodity Futures Trading Commission (U.S. derivatives regulator) has issued new staff guidance tightening expectations for designated contract markets listing event contracts, signaling closer scrutiny of prediction market products. Staff Advisory No. 26-08 from the Division of Market Oversight says exchanges should ensure pricing is transparent, settlement data is reliable and contracts are not readily susceptible to manipulation, especially for cash-settled products that depend on external data and calculation methods. The advisory was released alongside an Advance Notice of Proposed Rulemaking, opening a broader review of whether current prediction market rules need updating. Public comments are due by April 30, 2026. The guidance points to Core Principle 3 and Core Principle 4 under the Commodity Exchange Act, reinforcing that exchanges must both avoid listing easily manipulated contracts and maintain mechanisms to prevent manipulation and price distortion. It also warns against vague product specifications and calls for more detailed self-certification and approval filings. The examples used are sports-related, and the guidance does not add cryptocurrency-specific considerations, but it matters for exchanges and platforms operating around event-driven markets because the comment process could shape the next phase of U.S. regulation.