CFTC redefining ‘swaps’ to protect prediction market sports bets

Homepage > News > Business > CFTC redefining ‘swaps’ to protect prediction market sports bets TL;DR: The CFTC touted last-minute enforcement wins at fiscal year-end while asking the White House to review two new “swap” definitions meant to shield prediction markets from state gambling suits, which states are winning 38-5. Congress widened its insider trading probe, and the CFTC is reportedly examining ex-Rep. Adam Kinzinger’s small Kalshi bets on his own pardon. Key Takeaways: The CFTC announced enforcement wins in the final week of fiscal 2026, including a $950 million alleged Ponzi scheme complaint filed on September 25. A Florida court ordered two Fundsz executives to pay $15.7 million in restitution and a $15.7 million penalty in a case filed in 2023. The CFTC sent two proposed “swap” definitions to the White House as courts reject prediction market claims. States lead prediction markets 38-5 in court, and the Sixth Circuit unanimously rejected Kalshi’s argument that sports contracts are swaps. Congress expanded its prediction market insider trading probe on September 29, with the House Oversight Committee sending letters to PredictIt, Crypto.com, and Hyperliquid Labs....