According to Decrypt, the U.S. Comptroller of the Currency has proposed a new rule that would include event contracts tied to sports, politics, culture and weather within the definition of “swap” under current regulatory frameworks. The change aims to clarify which prediction market activities fall under the agency’s jurisdiction.
Separately, an interim rule issued by the CFTC excludes casino-style gambling from its regulatory scope. Together, these actions reflect a narrowing focus on non‑casino prediction markets while preserving the agency’s claim to exclusive authority over such offerings.
The proposed language explicitly folds event contracts—covering topics such as sports outcomes, political events, cultural phenomena and weather conditions—into the “swap” category. This move seeks to provide clearer guidance on where the CFTC can apply its oversight. The interim rule maintains that traditional casino gambling remains outside the agency’s jurisdiction.
By defining event contracts within “swap,” the agency signals an intent to regulate prediction markets related to those specific topics. Excluding casino‑style gambling underscores a distinction between commercial casino operations and predictive betting on external events. The dual approach aims to sharpen regulatory boundaries without overlapping with existing gambling authorities.
