Finally, the Commission should work to require DCMs and DCOs to ensure that the terms and conditions of event contracts are clear and designed to minimize potential areas for dispute as to resolution and payout.
Require prediction-market event contracts to have clear terms and conditions that minimize disputes over resolution and payout.
Occurrences
Evidence
Current CFTC rules require a designated contract market or swap execution facility product submission to include a copy of the rules setting forth the contract's terms and conditions, plus a complete explanation and analysis of the product's terms and conditions, underlying commodity, and compliance with the Commodity Exchange Act and CFTC regulations.
CFTC-designated contract markets must establish, monitor, and enforce compliance with contract terms and conditions; may list only contracts that are not readily susceptible to manipulation; and for cash-settled contracts must monitor settlement methodology and make good-faith efforts to resolve manipulation, disruption, or distortion concerns, including amending terms when necessary.
Axios reported that the CFTC released a 267-page notice of proposed rulemaking for sports event contracts and would accept comments for 90 days before finalizing rules.
WIRED reported that Spotify found artificial streaming after manipulation concerns, adjusted its charts, and that Kalshi had already resolved the related market and awarded traders before the adjustment; Kalshi said it was investigating.
An Ingham County Circuit Court order barred Kalshi from offering, listing, matching, executing, clearing, settling, or otherwise facilitating sports-betting-like event contracts to persons located in Michigan while litigation proceeds.
Business Insider reported that Sens. Todd Young and Elissa Slotkin introduced the Public Integrity in Financial Prediction Markets Act of 2026, which would require covered officials to disclose prediction-market trades over $250 and prohibit use of nonpublic information for profit.
Assessments
Existing federal CFTC rules already require listed derivatives/event-contract products to include and comply with contract terms and conditions and include some settlement-integrity protections, which partially overlaps with the promised clear-terms requirement. But the evidence does not show Slotkin delivered a prediction-market-specific rule requiring clear resolution and payout terms, and recent disputes plus a pending CFTC proposal indicate the specific outcome remains incomplete. Slotkin did introduce related prediction-market integrity legislation in the same Senate term, but it targeted disclosure and nonpublic-information abuse rather than resolution and payout terms, so it supports effort rather than full delivery.