CFTC Targets Event Contracts as Swaps Amid Prediction Market Battle

The Commodity Futures Trading Commission (CFTC) is seeking to define event contracts as swaps, amid a long-standing fight over prediction markets.

The CFTC's move comes as part of its ongoing efforts to regulate the cryptocurrency and derivatives markets. Event contracts are digital tokens that allow users to bet on specific events or outcomes, similar to traditional prediction markets.

The CFTC has been grappling with how to classify event contracts for years, with some arguing they should be considered securities and others claiming they are exempt from regulation as commodities or swaps.