The CFTC has issued a no-action letter simplifying swap data reporting for 19 prediction market platforms, allowing them to report like futures. This regulatory relief streamlines compliance for both existing and new operators in the prediction market space.
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.@CFTC Staff Issues No-Action Letter on Data Reporting for Event Contracts:
— CFTC (@CFTC) May 13, 2026 The technical distinction matters because event contracts—binary-outcome instruments popular on prediction markets—technically qualify as "swaps" under regulatory definitions. But the CFTC acknowledged these contracts function more like futures, with "highly-standardized terms, exchange-trading protocols, fungibility, and offset," according to the letter. This classification allows operators to use simpler reporting formats designed for futures rather than complex swap documentation. The 19 named beneficiaries represent a cross-section of the evolving prediction market landscape, from crypto-native platforms to traditional derivatives exchanges expanding into event contracts. The comprehensive list signals regulatory acceptance of these instruments as legitimate financial products requiring consistent treatment. The CFTC noted that while event contracts meet the technical definition of swaps due to their binary-outcome structure, they trade on designated contract markets rather than swap execution facilities—a key distinction that justified the streamlined approach. The Division of Market Oversight and Division of Clearing and Risk jointly issued Thursday's guidance after receiving multiple requests from exchanges seeking clarity on compliance requirements, it said in an announcement. The coordinated response reflects institutional demand for prediction markets, which have expanded beyond political forecasting into economic indicators, sports outcomes, and cultural events.
The no-action letter allows prediction market platforms to report data using simpler futures reporting formats instead of complex swap documentation.
The no-action relief covers 19 platforms, including Polymarket US, Kalshi, Gemini Titan, and Bitnomial.
The decision signals regulatory acceptance of prediction markets as legitimate financial products, potentially encouraging their growth and expansion into new areas.
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The move comes as the CFTC jockeys with states over which has authority to regulate prediction markets, with multiple states arguing that the platforms subvert local gambling and gaming laws. CFTC Chair Michael Selig has vowed to sue any state that attempts to regulate prediction markets under its own gambling laws, claiming that the agency has exclusive regulatory authority over the platforms. Selig has argued that unclear regulation could drive prediction markets offshore into unregulated space, risking FTX-style “implosions.” But the CFTC Chair has faced bipartisan pushback from lawmakers amid controversies around insider trading and war-related wagers on the platforms.