The US Commodity Futures Trading Commission (CFTC) has officially canceled a proposal created under the Biden administration that aimed to restrict event-based markets.
The plan would have stopped trading on contracts linked to sports, politics, and similar topics.
CFTC chair Mike Selig announced on February 4 that the agency has withdrawn the 2024 proposal, which classified those event contracts as being against the public interest.
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He explained that the earlier idea represented an unnecessary attempt to control which markets could exist, especially before the 2024 presidential election. The CFTC will not issue final rules based on that version.
Selig said the agency will instead create a new framework that aligns with the intent of the Commodity Exchange Act and supports careful innovation in derivatives trading. According to him, the goal is to provide clarity and consistency rather than broad restrictions.
Additionally, the CFTC also retracted a staff letter released in September 2025. That letter had reminded CFTC-regulated firms of their responsibilities when handling sports event contracts and advised them to prepare for possible legal disputes.
However, Selig said that while the advisory was meant to highlight legal issues, it ended up causing unnecessary confusion among market participants.
He concluded that the commission plans to focus on developing balanced, practical rules for event contracts.
Recently, the CFTC created a new committee to help oversee blockchain and artificial intelligence (AI) technology. What did the agency say? Read the full story.
