CFTC prediction market rules: 1,500+ comments, Kalshi backs oversight

The US CFTC received 1,500+ public comments on its proposed prediction market rules after the comment period closed on 1 May 2026, following a Federal Register proposal published on 16 March 2026. Kalshi—already regulated by the CFTC—supported continued federal oversight. In its 1 May submission, Kalshi COO Luana Lopes Lara said existing CFTC regulations are “well-designed and effective” and urged the agency to provide guidance so event contracts can be listed, traded, and overseen. State gambling regulators pushed back. Pennsylvania Gaming Control Board warned the CFTC approach could help platforms avoid state gambling laws, saying markets could “masquerade as unregulated sportsbooks.” At the same time, the US Senate passed a ban restricting members and staff from using prediction market platforms. Kalshi and Polymarket said they tightened controls to prevent insider trading and block political users. Separately, the CFTC’s Enforcement Division had flagged prediction market insider trading as an active enforcement priority in February 2026. For crypto traders, the CFTC prediction market rules are mainly a compliance and regulatory-risk signal rather than a direct token catalyst. Still, they may affect sentiment and operational expectations for crypto-adjacent event/prediction contract products in the US, especially if enforcement activity increases.