CFTC issues no-action letter, exempting prediction market platform from swap data reporting requirements

According to The Block, staff from the Commodity Futures Trading Commission (CFTC) issued a no-action letter, substantially exempting prediction market platforms from swap data reporting and recordkeeping requirements.

The CFTC's Market Oversight Division and Clearing and Risk Division stated that they would not recommend enforcement actions against designated contract markets (DCMs) and clearinghouses for failing to comply with relevant reporting requirements. This move aims to eliminate regulatory uncertainty for event contract platforms.

The no-action letter currently covers 19 beneficiary entities, including Polymarket US, Kalshi, Gemini Titan, and Bitnomial.