The US CFTC chairman withdrew the 2024 proposal to regulate prediction market event contracts.

According to ChainCatcher, Mike Selig, chairman of the U.S. Commodity Futures Trading Commission (CFTC), has withdrawn his rule proposal to ban contracts for political events and repealed previous guidance that caused confusion in the industry.

Selig stated that the new regulations will promote responsible innovation in the derivatives market based on a reasonable interpretation of the Commodity Exchange Act. Previous proposals had equated contracts related to political events with illegal contracts related to war, terrorism, etc., arguing that they were "not in the public interest." However, with the Trump administration appointing new leadership, the CFTC is shifting its support towards prediction markets, including platforms like Kalshi and Polymarket. Selig's actions pave the way for more companies (such as Coinbase and Cboe) to enter the prediction market space. Furthermore, the CFTC is actively participating in congressional negotiations on the crypto market structure bill, aiming to establish itself as the primary regulator of crypto spot markets that do not involve securities.