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CFTC Withdraws Event Contract Proposed Rulemaking

"The Commission ... will advance a new rulemaking grounded in a rational and coherent interpretation of the Commodity Exchange Act that promotes responsible innovation in our derivatives markets in line with Congressional intent."
Michael Selig, CFTC Chair
"The Commission ... will advance a new rulemaking grounded in a rational and coherent interpretation of the Commodity Exchange Act that promotes responsible innovation in our derivatives markets in line with Congressional intent."
Michael Selig, CFTC Chair

The CFTC withdrew a 2024 rulemaking on "gaming" and a related staff advisory concerning sports-related event contracts.

In the withdrawal notice, the CFTC said it intends to reconsider the proposal—which sought to specify types of contracts contrary to the public interest involving "gaming"—in light of "various forms of State regulatory actions and litigation." The CFTC cited the need to review issues related to exclusive jurisdiction, the definition of "gaming," and the preemption of state gambling laws.

Separately, CFTC staff withdrew Staff Letter 25-36, stating that the "development of the market for event contracts" and the experience of registered entities in facilitating such trades have rendered the guidance moot.

The CFTC added that any future regulatory action would proceed through the publication of new proposed rules.

Primary Sources

  1. CFTC: Release Number 9179-26: CFTC Withdraws Event Contracts Rule Proposal and Staff Sports Event Contracts Advisory
  2. CFTC: Notice of withdrawal of proposed rules: Withdrawal of Proposed Regulatory Action
  3. CFTC: Staff Letter 26-04: Withdrawal of CFTC Staff Advisory 25-36

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