ProphetX praises CFTC’s proposed rulemaking on prediction markets

This week, the Commodity Futures Trading Commission (CFTC), the regulatory body in charge of overseeing U.S. financial markets, published a Notice of Proposed Rulemaking concerning event contracts referencing sporting events.

On the same day of the Commission’s announcement, the first U.S. sports-native prediction market, ProphetX, applauded the regulator’s move.

CFTC’s decision marks a landmark step, ProphetX says

Late in 2025, ProphetX filed applications for registration as a Designated Contract Market (DCM) and a Derivatives Clearing Organization (DCO) with the CFTC.

Once the company secures such registration, it would be designated as the first regulated exchange and clearinghouse in the country built specifically for sports-based event contracts.

Earlier this year, in April, ProphetX responded to the CFTC’s Advance Notice of Proposed Rulemaking.

In its letter, the company praised and supported the regulator’s decision to establish a clear federal regulatory framework for sports event contracts and further regulations affecting the broader prediction markets vertical.

Now, ProphetX acknowledged CFTC’s decision to press forward with proposed rulemaking on event contracts and deemed it "a landmark step toward establishing clear, workable federal standards for the prediction market industry."

Upon announcing its decision, the Commission highlighted the increasing number and variety of event contracts offered by CFTC-registered platforms.

The CFTC also said that some contracts reference sporting events which is why the proposal seeks to establish a structured framework for "evaluating whether such contracts involve an activity enumerated in Section 5c(c)(5)(C) of the Commodity Exchange Act —activity that involves terrorism, assassination, war, gaming, or conduct that is unlawful under federal or state law—and, if so, whether that contract is contrary to the public interest."

Dean Sisun, ProphetX’s Co-Founder and CEO, commented on the latest development, Casino Guru News learned from a press release.

"ProphetX applauds CFTC Chairman Selig for his leadership in bringing regulatory certainty to America's prediction market ecosystem," he said.

"Today's proposed rulemaking is a landmark first step toward establishing workable federal standards that encourage innovation and put consumer protection at the center of this emerging market," Sisun pointed out in conclusion.

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