In addition, the Commission must prioritize its examination and review of DCMs and DCOs to ensure that they have appropriate policies, procedures, and resources to comply with this guidance—and in fact are doing so.
Require stronger CFTC examination and review of prediction-market exchanges and clearing organizations to ensure compliance policies, procedures, staffing, and resources are adequate.
Occurrences
Evidence
Axios reported that the CFTC proposed rules to allow platforms such as Kalshi and Polymarket to offer sports event contracts nationally, subject to restrictions and a 90-day comment period. The report describes permissive rulemaking, not a final mandate for stronger CFTC examinations of prediction-market exchanges or clearing organizations.
Axios Detroit reported that an Ingham County Circuit Court temporary restraining order, issued June 29, 2026, blocked Kalshi from offering sports-related prediction contracts to Michigan users while litigation continues. This is a state-court constraint, not a federal CFTC examination or review requirement.
AP reported that Sen. Todd Young and Sen. Elissa Slotkin introduced a bill to bar federal employees from using nonpublic information to bet on prediction markets, and that concrete legislative action on broader prediction-market safeguards remained pending. AP also noted CFTC staffing shortages and limited reach over offshore platforms.
Business Insider reported that Young and Slotkin's Public Integrity in Financial Prediction Markets Act of 2026 would require senior officials to disclose prediction-market trades over $250 and would prohibit use of nonpublic information for profit. The article framed the bill as closing a disclosure and insider-trading gap, not as a CFTC examination-resource mandate.
WIRED reported that CFTC Chair Michael Selig said the agency was using AI, blockchain tracing, and market-abuse detection tools to pursue suspicious prediction-market trading, including on offshore platforms. The report describes enforcement activity by the agency, not a new statutory requirement imposed by Slotkin's commitment.
Barron's reported that the CFTC's Chicago enforcement office had lost its last enforcement attorney amid broader staffing reductions, even as prediction markets and crypto created new risks. Former CFTC officials expressed concern that the agency was losing expertise and capacity.
Assessments
Slotkin took related same-term action on prediction-market oversight through the Young-Slotkin Public Integrity in Financial Prediction Markets Act of 2026, but that bill addressed disclosure and misuse of nonpublic information rather than requiring stronger CFTC examinations and resource reviews of prediction-market exchanges and clearing organizations. Other cited CFTC activity was proposed rulemaking or enforcement activity, not a final delivered requirement matching the promise, and evidence of CFTC staffing losses cuts against delivery. This supports partial credit for related progress and effort, but not full fulfillment.