For the second time this year, the CFTC warned prediction markets operators against overly broad and template-based certifications for event contracts. The US regulator emphasized that self-certified contracts must include the full terms and conditions of each permutation along with a concise analysis demonstrating their compliance. This second warning, issued on July 24, comes just days before the July 27 deadline for submitting comments on proposed rule amendments governing event contracts. The CFTC is proposing a three-step analytical framework to assess whether these contracts are contrary to the public interest, particularly regarding activities related to terrorism or assassination. According to law firm Ropes & Gray, the proposed rules could fundamentally reshape the regulatory landscape for prediction markets.
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