CFTC Proposes Swaps Rule Changes Amid Court Rulings and Crypto Trading Card Expansion

The US Commodity Futures Trading Commission (CFTC) has proposed two new rules to update its definition of 'swaps' under federal laws. The first proposal explicitly includes 'event contracts' in the definition, while the second excludes 'casino-style gambling products'. This move may be a response to recent court rulings and could have implications for prediction market exchanges.

The CFTC filed the proposed rule on event contracts and the interim final rule on casino-style gambling on September 28. The latter takes effect immediately with executive approval, while the former will proceed to a public comment period if it continues. However, the full text of either rule has not been published yet.

This regulatory response may be significant if the Supreme Court declines to weigh in on the legal questions around what constitutes a swap under federal law. The CFTC's categorization of event contracts as swaps could give more weight to its regulations and provide clarity for exchanges like Kalshi, which is involved in a dispute with Ohio and Tennessee officials.

Meanwhile, Coinbase has introduced a new product that allows users to remotely 'open' packs of trading cards backed by the physical versions. This product, which includes Pokémon cards, will enable users to choose between leaving the physical cards in storage or having them shipped. Pricing for the packs is expected to reflect demand.