The U.S. Commodity Futures Trading Commission (CFTC) issues a second advisory warning to prediction markets about how they certify event contracts. According to reporting from CoinDesk and Cointelegraph, the regulator says some firms are using overly broad, template-style or “cookie-cutter” self-certifications rather than ensuring event contract terms are appropriate and adequately support regulatory review. The advisory reflects concerns that firms may be cutting corners in the self-certification process. Cointelegraph notes the warning is the second time this year the CFTC has raised similar concerns, indicating the regulator is actively monitoring compliance in this area. CoinDesk similarly describes the advisory as a renewed warning that firms have been drifting toward standardized certifications that may not address the specifics of each event contract. While the sources focus on the certification approach and the regulator’s caution, both accounts agree on the core point: the CFTC tells prediction markets to stop using broad, template-style certifications and instead comply with the requirements for event contract certification.
CFTC issues second warning to prediction markets over cookie-cutter contract certifications
The U.S. Commodity Futures Trading Commission (CFTC) issues a second advisory warning to prediction markets about how they certify event contracts. According to reporting from CoinDesk and Cointelegra...
- The CFTC issues a second advisory to prediction markets regarding event contract self-certifications.
- The CFTC warns firms against using overly broad, template-style (“cookie-cutter”) certifications.
- Both sources report this is the second such warning issued by the CFTC within the year.
- The advisory relates to how prediction markets handle event contract certification to ensure proper compliance and review.
For the second time this year, the regulator told prediction markets to stop issuing overly broad, template-style certifications of events contracts.
3 hours agoThe Commodity Futures Trading Commission again issued an advisory that signals firms have been straying into cookie-cutter self-certification.
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