CFTC Warns Prediction Market Firms Against Broad, Template-Style Contract Filings

The Commodity Futures Trading Commission issued an advisory Friday warning prediction market operators against submitting overly broad, template style certifications for event contracts, marking the second such warning in recent months.

Regulator Flags Repeated Compliance Gaps

The CFTC, which oversees firms including Kalshi, Coinbase, Polymarket, and Crypto.com, said many designated contract markets keep self-certifying event contracts as broad templates without providing terms for each specific version or a clear analysis of compliance. The agency warned this makes it harder to evaluate settlement methods, data sources, and whether each contract variation meets core regulatory principles. Closely related contracts can still be filed together as a class, the agency noted, as long as proper documentation is included.

Legal Status Still Contested

The CFTC’s authority over prediction markets remains legally unsettled, with courts, potentially including the Supreme Court, expected to weigh in eventually. Chairman Mike Selig has pushed to establish the agency as the sole regulator of event contracts, while numerous states argue these platforms amount to illegal sports gambling under state jurisdiction.

Kraken Gets Extension

Separately, the CFTC extended the dormant status of Kraken’s derivatives exchange, which hasn’t executed a trade since early 2025, giving the company more time to decide its next steps following its Bitnomial acquisition.