The U.S. Commodity Futures Trading Commission on Friday put an interim rule in place and proposed a second rule that would pull event contracts on sports, politics, culture, and weather into the federal definition of swaps. CoinDesk reported that the interim final rule takes effect while it stays open for comment. It tries to keep casino-style gambling outside the swap definition. The companion proposal would place those event contracts inside the definition, which is CFTC territory and, on the agency's reading, outside state gambling regulators. The proposal has a 30-day comment window. Platforms named in the coverage include Kalshi and Polymarket.
An interim rule is policy now. The proposal is not final
Chairman Michael Selig is the only commissioner on a body meant to have five, so he can set this policy alone. The package went through White House review in less than two weeks. States are already in court with the agency over sports contracts. Recent appellate rulings have split: one went against the states, and two supported them. States and former officials have also filed views with the Supreme Court. Jaret Seiberg of TD Cowen wrote on Friday that the interim rule looks designed to answer the claim that a broad swap definition would make a casino or tribal sportsbook wager federally illegal. He added that whether it works in court is a separate question. This is not Regulation CTX or Regulation CAM. Those notices, opened on 5 October, cover leveraged retail crypto and a possible new exchange category. Friday's action is about prediction markets. It does not by itself decide the state lawsuits. See the CTX and CAM comment notice and Friday's bitcoin ETF print.