A 30-plus-member CFTC advisory committee used its first meeting to zero in on prediction markets, with mention markets and self-certified event contracts emerging as the main regulatory flashpoints.
2,500 self-certifications have been filed since January 2025 without any being opposed, CME CEO Terry Duffy said, arguing the fast-track process leaves some contracts vulnerable to manipulation and possible core-principles violations.
Mention markets — bets on words used in speeches or earnings calls — drew particular concern from Duffy and Robinhood CEO Vlad Tenev, while Kalshi defended self-certification as necessary for timely event trading.
Michael Selig, the CFTC's sole sitting commissioner, outlined a three-step roadmap: clarify which event contracts can be barred, modernize reporting for fully collateralized contracts, and tighten listing and consumer-protection rules for designated contract markets.
The meeting follows the CFTC's Aug. 11 emergency order allowing Kalshi to keep offering contracts in New York despite the state's lawsuit, underscoring a widening federal-state fight over prediction-market oversight.