Advertise
- Rizwan Ansari
Rizwan Ansari
- Reviewed by:
Sohrab KhawasSohrab is a passionate cryptocurrency news writer with over five years of experience covering the industry. He keeps a keen interest in blockchain technology and its potential to revolutionize finance. Whether he's trading or writing, Sohrab always keeps his finger on the pulse of the crypto world, using his expertise to deliver informative and engaging articles that educate and inspire. When he's not analyzing the markets, Sohrab indulges in his hobbies of graphic design, minimal design or listening to his favorite hip-hop tunes.
- Feb 05, 2026 05:42 UTC
-
U.S CFTC Withdraws Ban on Political Prediction Markets like Kalshi and Polymarket
CFTC withdraws 2024 rule proposal that aimed to ban political and sports prediction markets nationwide.
Platforms like Kalshi and Polymarket can now continue event-based trading without threat of federal ban.
The dropped rule removes uncertainty and supports growth of blockchain-based prediction trading platforms across United States.
The U.S. Commodity Futures Trading Commission (CFTC) has officially withdrawn its 2024 proposal to ban political and sports prediction markets such as Kalshi and Polymarket.
The decision signals a major policy shift and opens new doors for platforms that offer event-based trading in the United States.
CFTC Withdraws Prediction Market Ban
In a recent press release, the Commodity Futures Trading Commission (CFTC) announced that it has dropped the 2024 draft rule that aimed to ban political prediction markets. The earlier proposal planned to treat these markets as harmful and restrict them completely.
However, under the new leadership of Chairman Mike Selig, the draft rule will no longer move forward.
The CFTC admitted that the old proposal created confusion for businesses and investors. It also accepted that the plan went beyond the proper role of the regulator.
With this decision, prediction market platforms can now continue to operate without fear of an outright ban.
New Leadership Brings Clearer Direction
The policy change follows a major shift in CFTC leadership after President Trump took charge of Whitehouse. The earlier rule was created under the Joe Biden administration and never received final approval.
Chairman Mike Selig called the old proposal a “policy overreach.” He said it tried to control markets in a way that went beyond the agency’s proper role. According to Selig, the rule created confusion and uncertainty for businesses in the prediction market industry.
With this reversal, platforms like Kalshi and Polymarket can continue operating freely. These platforms let users predict real-world events, such as politics and sports, often using blockchain technology.
Relief for Prediction Market Platforms
The decision is being seen as a major victory for the growing prediction market industry. Over the past few years, on-chain platforms have gained popularity, especially during major political events.
In recent years, these platforms have grown in popularity, especially around major political and economic events. Users rely on them to trade contracts based on real-world outcomes.
In 2024, the CFTC tried to block Kalshi from offering political event contracts but lost a court battle. That defeat allowed such markets to launch legally.
With the ban now removed, these businesses can continue to expand and attract more users in the U.S. market.
Never Miss a Beat in the Crypto World!
Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.
FAQs
No. The CFTC has officially withdrawn its 2024 proposal to ban political and sports prediction markets, allowing platforms to continue operating in the U.S.
Yes. With the CFTC’s policy reversal, event-based trading platforms like Kalshi and Polymarket remain legal for U.S. users to trade contracts on political outcomes.
The decision is a major victory, allowing these platforms to operate without fear of a ban and continue expanding their U.S. user base for event-based trading.
Prediction markets operate under CFTC oversight; the recent policy shift provides clearer direction, but users should still assess platform compliance and risks independently.
Trust with CoinPedia:
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
Investment Disclaimer:
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored and Advertisements:
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
Yes 
No 
