CFTC Proposes Framework to Vet Event Contracts Against Enumerated Activities
The Commodity Futures Trading Commission released a Notice of Proposed Rulemaking to amend Regulation 40.11 and add Appendix F, creating a structured, contract-by-contract framework to determine whether event contracts referencing activities like terrorism, assassination, war, gaming, or unlawful conduct implicate the public interest; the proposal establishes a 90-day public comment window, provides defined terms (including “involve” and “gaming”), and follows an March NPRM on prediction markets, with the aim of protecting market integrity while allowing legitimate innovation.