CFTC Warns Prediction Market Operators on Self-Certification Requirements

The US Commodity Futures Trading Commission (CFTC) has issued another warning to prediction market operators, urging them to follow its rules when certifying event contracts that cover a wide range of possible outcomes. The regulator said some platforms are submitting “self-certified” listings without providing the specific terms and compliance analysis required for each contract permutation.

In an advisory released on July 24 and published as part of a Friday notice, the CFTC reiterated that, despite ongoing policy discussions and proposed rulemaking, operators may still self-certify certain event contracts as compliant with the Commodity Exchange Act (CEA) and CFTC regulations, as long as they do so within the statutory self-certification framework.

The CFTC warned that broad, template-style self-certifications for event contracts are not acceptable for listings under its jurisdiction. Operators are expected to submit the terms and conditions for each proposed permutation, along with concise explanations tied to the product and the relevant commodity and compliance requirements.