The White House in the United States has initiated a review of CFTC's Prediction Market Regulatory Rules

May 28: The White House’s Office of Information and Regulatory Affairs (OIRA) has begun reviewing a draft rule proposed by the U.S. Commodity Futures Trading Commission (CFTC) focused on prediction markets—a development that could reshape how U.S.-based prediction platforms like Kalshi and Polymarket operate. Federal documents show the rule was submitted to OIRA for review on May 26 and centers on "prediction markets." While the full text of the rule hasn’t been released, market observers interpret this as the CFTC advancing plans to establish a broader, federal regulatory framework for event-based contracts. Prior to this, several states—including Illinois and New Jersey—have argued that event contracts, especially those tied to sports, amount to online gambling. But Kalshi and the CFTC contend that designated contract markets regulated under federal commodity law should fall exclusively under the CFTC’s jurisdiction. Notably, former U.S. President Trump publicly backed the CFTC’s claim to "exclusive regulatory authority" over prediction markets. This latest step follows the CFTC launching a public comment period in March of this year, which included discussions about which prediction market contracts might be banned for running counter to the public interest, covering areas like elections, gambling, and sports events.