Prediction markets provider Polymarket on Wednesday applied to list cash with interest in U.S. sports contracts, according to a self-certification filing with the Commodity Futures Trading Commission.
Polymarket filed on Wednesday to list “combination outcome contracts,” describing these event contracts (the official term for prediction markets) as combining two or more underlying contracts. Additionally, all underlying contracts must settle based on specific outcomes set by the user.
“Each outcome must be satisfied for the contract to resolve to $1.00. If and only if each leg is satisfied, the contract resolves to $1.00. If any leg is not satisfied, the contract resolves to $0.00, regardless of the outcome of any remaining unresolved legs,” the document states.
Since the contracts are self-certifying, Polymarket is not so much asking for explicit permission to list these contracts as it is telling the CFTC that it intends to list these products. They will be added to the list “no earlier than May 21, 2026,” the document said.
Another document said another piece of evidence had been submitted, but Polymarket asked the CFTC to keep it confidential because of the potential for trade secrets or commercial information.
exchange traded funds
The SEC, which does not directly regulate prediction markets, is studying the form of an exchange-traded fund (ETF) surrounding prediction markets, Chairman Paul Atkins said in a statement on Wednesday.
ETFs facilitate capital formation and investor choice, he said, noting that ETF assets have tripled in the past seven years.
“Novel products raise novel questions, and I appreciate the willingness of fund sponsors to delay the effectiveness of some novel ETFs, including event contract ETFs, while we consider the impact,” he said. “To ensure we do this in a transparent and thoughtful manner, I have directed staff to seek public input on how the Commission should respond to recent market changes.”
Prediction markets have come under intense scrutiny from Congress and the courts over the past few months, especially as they expand to sports leagues. State regulators and gambling companies argue that sports-related prediction markets infringe on states’ rights to regulate and tax gambling products because prediction market providers are regulated at the federal level.
The U.S. Commodity Futures Trading Commission insists that these products are properly regulated under the Commodity Exchange Act. The U.S. Supreme Court is widely expected to take up the issue at some point.
Meanwhile, lawmakers are also scrutinizing prediction markets, but it’s unclear whether a bill will be introduced to address the issues.
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