TLDR
- The CFTC has warned prediction markets firms for the second time this year about cutting corners on contract certifications.
- Companies like Kalshi, Coinbase, Polymarket and Crypto.com operate under CFTC oversight.
- Firms are submitting broad, template-style certifications instead of detailed individual filings.
- The CFTC’s role as primary regulator of prediction markets still faces legal uncertainty.
- Kraken’s Derivatives Exchange was granted an extension of its dormant regulatory status.
The U.S. Commodity Futures Trading Commission has issued a second warning this year to prediction markets operators, telling them to stop submitting overly broad contract certifications.
CFTC warns prediction market firms to stop submitting template-style event contracts without detailed terms. Regulator demands individualized certification with specific product analysis to ensure compliance.#PredictionMarkets #Crypto Regulation #CFTC pic.twitter.com/G92evKb65Y
— CryptoInBlock (@CryptoInBlock) July 26, 2026
The agency released the advisory on Friday, saying firms regulated by the CFTC have been self-certifying event contracts as wide-ranging templates without providing the required details for each individual contract.
What the CFTC Wants
The regulator said firms must supply the terms and conditions of each proposed contract variation, along with a clear explanation and analysis of the product, the underlying commodity, and how it complies with the rules.
“Broad, template-style certifications should not be submitted,” the CFTC stated directly in its announcement.
The concern is that sloppy filings make it harder for the agency to check whether a platform has done the proper work — including evaluating settlement methods, data sources, and compliance across all contract types.
The CFTC did note that closely related contracts can be grouped together in a single filing, as long as they share enough common terms and proper supporting documentation is included.
The advisory comes just days before the CFTC’s Monday deadline for public comments on proposed rule changes that would reshape how it decides whether certain event contracts are in the public interest.
Who Is Affected
The CFTC oversees several major prediction markets platforms including Kalshi, Coinbase, Polymarket, and Crypto.com.
The warning applies to all “designated contract markets” — the formal term for regulated platforms — that have been taking shortcuts in the certification process.
This is the second time the CFTC has flagged this issue. A similar warning was sent on March 12 earlier this year.
The rapid growth of event contracts, especially around sports betting and political outcomes, has put pressure on the regulatory process. The industry is relatively new, and regulators are still working out the rules as they go.
Adding to that complexity, the CFTC’s legal authority over prediction markets is not fully settled. Courts are still working through challenges, and the U.S. Supreme Court could eventually weigh in.
Many states have also pursued prediction markets operators over claims that their sports contracts are illegal gambling under state law, creating a conflict with the CFTC’s claim of sole federal oversight.
CFTC Chairman Mike Selig has made defending the agency’s authority a top priority, actively fighting legal battles at both the state and federal level.
In a separate action on Friday, the CFTC approved an extension for Kraken’s Derivatives Exchange, which has been dormant since early 2025. The extension keeps Kraken’s regulated status active while the company decides its next move following its acquisition of Bitnomial earlier this year.
Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions — all in one powerful platform.
Sign up today and get 50% OFF full access to our premium stock picks.
Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
