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- The CFTC issued an Oct. 9 interim final rule excluding traditional casino and sportsbook wagers from the swap definition while proposing to classify sports, political, and weather event contracts as swaps, asserting exclusive federal jurisdiction under the Commodity Exchange Act.
- In a parallel proposal open for comment through Dec. 2, the regulator introduced a Crypto Asset Markets (CAMs) framework for retail leveraged trading, requiring platforms to enforce a 28-day actual delivery rule and hold mandatory proof-of-reserves for omnibus accounts.
The Commodity Futures Trading Commission has proposed new rules that would treat sports-related event contracts as swaps while separately creating a new federal framework for certain retail crypto trading platforms, a pair of moves that could reshape how prediction markets and adjacent betting products are regulated in the U.S.
The proposals matter because they go to the center of a growing jurisdiction fight: whether contracts tied to sporting events are federally regulated derivatives or state-regulated sports betting. They also signal that the CFTC wants a more formal structure for crypto platforms offering leveraged or financed retail trades.
CFTC draws a line between sportsbook wagers and event contracts
On Oct. 9, the CFTC issued an interim final rule saying casino-style gambling products, including wagers placed on sportsbooks and casino games, are excluded from the swap definition. At the same time, the agency proposed defining swaps to include event contracts based on sports, politics, culture, and weather-related events.
CFTC chairman Michael Selig said those products are commodity derivatives that fall within the agency’s authority. In remarks cited by CoinGeek, Selig said, “These products are commodity derivatives squarely within the CFTC’s regulatory remit under the Commodity Exchange Act and are within the agency’s exclusive jurisdiction.”
That position is facing pushback. The NFL has urged the U.S. Supreme Court to take up the issue, arguing that event contracts on NFL games are sports betting and should be regulated by states.
For U.S. betting and prediction market operators, the split matters. The CFTC is trying to distinguish traditional sportsbook wagering from contracts it views as derivatives, even when both may be tied to the same underlying sports outcomes.
New crypto market category could also affect betting-adjacent platforms
In a separate proposal, the CFTC requested public comment on rules for retail commodity transactions involving crypto assets. The plan would create a new category called crypto asset markets, or CAMs, as a subcategory of designated contract markets.
Under the proposal, retail trades would be treated as crypto asset transactions if the customer does not take actual delivery within 28 days. The CFTC says actual delivery would require tokens to be placed in a customer’s private digital wallet under that customer’s direct control.
Former CFTC general counsel Rob Schwartz said the proposed definition appears broad. “It just has to be offered that way,” he said, referring to trades offered with leverage, margin, or financing.
Selig has described CAM registration as “a federal option for crypto asset exchanges” and said the proposal contemplates a proof-of-reserves obligation for exchanges that hold customer assets in omnibus accounts.
Timeline and enforcement questions remain
The deadline for comments on the crypto proposal is Dec. 2. According to TD Cowen analyst Jaret Seiberg, final rules are unlikely before late Q1 or early Q2 2027, and the process could slip into 2028.
The broader question is whether the CFTC will have the resources to police these markets aggressively. NPR, as cited by CoinGeek, reported the agency’s staff fell by about 21% between June 2024 and January 2026. As of July, headcount was still 16% below its decade average, while former enforcement attorneys said 2025 enforcement actions were down 80% from the prior 10-year average.
That leaves operators, exchanges, and sports event contract platforms waiting on two things at once: where the CFTC draws the legal line, and how forcefully it can enforce it once the rules are final.
Source: As reported by Steven Stradbrooke.
