CFTC Proposes Classifying Event Contracts as Swaps to Distinguish from Gambling

The U.S. Commodity Futures Trading Commission (CFTC) has submitted two draft rules to the Office of Management and Budget. The first proposal seeks to formally classify event contracts traded on platforms like Kalshi, Polymarket, Crypto.com, and Robinhood as "swaps" under regulatory oversight. The second proposal aims to explicitly exclude casino-style gambling products from the swap definition. This move follows conflicting federal court rulings regarding the agency's jurisdiction over prediction markets, which may ultimately require a Supreme Court decision.