U.S. CFTC proposes ban on contracts for political events

Prediction platforms, including PredictIt, Polymarket, Zeitgeist, and Kalshi, offer users the opportunity to purchase contracts on the outcome of real-world events, including elections and policy developments, and have become popular in the cryptocurrency industry. Buyers place yes or no bets, receiving a reward if they are correct and paying a cost if they are wrong. Under the proposal, contracts for political contests, award contests and gaming outcomes for U.S.-regulated companies would be prohibited.