CFTC Reverses Biden-Era Stance, Opens Door for Crypto Prediction Markets

In a significant policy shift, the U.S. Commodity Futures Trading Commission (CFTC) has officially rescinded its previous guidance on event contracts, often called prediction markets. The regulator declared a "do-over," nullifying a 2021 staff bulletin that had labeled such markets as a potential "frolic" beyond its authority. This move clears regulatory ambiguity and is seen as a major step toward legitimizing and expanding prediction markets, particularly in the cryptocurrency and blockchain sector. The decision paves the way for platforms like Polymarket, which uses blockchain technology for real-world event betting, to operate with greater regulatory certainty. Industry experts view this as a bullish development for decentralized finance (DeFi) innovation and the broader crypto market, signaling a more accommodating regulatory approach under current CFTC leadership.