The Commodity Futures Trading Commission held the inaugural meeting of its Innovation Advisory Committee on August 20, focused on risks associated with prediction markets and event contracts. Chairman Michael S. Selig announced upcoming amendments to Rule 40.11 to enhance monitoring and strengthen consumer protections. Representatives from Kalshi, Coinbase, and CME Group participated in discussions advocating for a unified federal framework rather than a patchwork of state regulations. A Kalshi contract tied to former congressman George Santos was cited as an example, resulting in a $35,000 fine and demonstrating the CFTC’s willingness to penalize manipulation. The public comment period runs through August 27, indicating the agency aims to move quickly.
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