{"id":72505,"date":"2026-05-14T12:46:42","date_gmt":"2026-05-14T12:46:42","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/cftc-drops-swap-reporting-duties-for-prediction-market-operators-across-the-us\/"},"modified":"2026-05-14T12:46:42","modified_gmt":"2026-05-14T12:46:42","slug":"cftc-drops-swap-reporting-duties-for-prediction-market-operators-across-the-us","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/cftc-drops-swap-reporting-duties-for-prediction-market-operators-across-the-us\/","title":{"rendered":"CFTC Drops Swap Reporting Duties for Prediction Market Operators Across the US"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"@container mb-[25px] rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-[6px] !bg-success-10 p-3 @[420px]:p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-[19px] !text-[#1c1c1c] md:text-[20px]\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">The CFTC\u2019s Division of Market Oversight issued a blanket no-action letter on May 13, 2026, covering all swap data reporting for event contracts.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">The ruling relieves DCMs, DCOs, and their participants from SDR reporting duties, reducing compliance costs across prediction market operators.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">New entities seeking identical relief can request inclusion in the no-action letter\u2019s appendix, with the CFTC signaling uniform treatment going forward.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<h2>CFTC Issues Blanket No-Action Letter Cutting SDR Reporting for Event Contracts<\/h2>\n<p>The <a href=\"https:\/\/news.bitcoin.com\/sec-cftc-alignment-cuts-risk-of-overlapping-enforcement-actions\/\">CFTC<\/a>\u2018s Division of Market Oversight and Division of Clearing and Risk jointly announced the position. The two divisions said they will not recommend enforcement action against designated contract markets, derivatives clearing organizations, or their participants for failing to report event contract transaction data to swap data repositories.<\/p>\n<p>The no-action relief also covers recordkeeping requirements that would otherwise apply under existing swap regulations. The CFTC made clear the position applies only within the terms outlined in <a href=\"https:\/\/www.cftc.gov\/PressRoom\/PressReleases\/9131-26\" target=\"_blank\" rel=\"noopener noreferrer\">the letter<\/a> issued May 13.<\/p>\n<p>Regulators explained that the decision came in response to repeated requests from DCMs and DCOs to list and clear event contracts. Multiple operators had filed individual requests seeking similar relief, leading the agency to consolidate its approach.<\/p>\n<figure id=\"attachment_813990\" aria-describedby=\"caption-attachment-813990\" style=\"width:1242px\" class=\"wp-caption aligncenter\"><figcaption id=\"caption-attachment-813990\" class=\"wp-caption-text\">Image source: CFTC letter.<\/figcaption><\/figure>\n<p>The divisions disclosed that they expect more requests to follow. Some of those requests are expected to ask for modifications to earlier no-action positions, accounting for changes to DCM designation orders, new DCOs entering the space, and other market developments.<\/p>\n<p>By issuing a single blanket position, the commodities and <a href=\"https:\/\/news.bitcoin.com\/coinbase-reports-8-6-record-market-share-and-200-million-derivatives-revenue\/\">derivatives<\/a> regulator aims to reduce administrative burden on both regulators and market participants. The structure removes the need for the agency to issue repetitive individual letters each time a new entity seeks the same relief.<\/p>\n<p>The new framework covers all entities that previously received no-action letters on event contract data reporting. Those prior beneficiaries remain covered without needing to file again.<\/p>\n<p>Entities that want to list or clear similar contracts going forward can request inclusion in the letter. If the divisions approve, the requester\u2019s name gets added to an appendix attached to the CFTC letter.<\/p>\n<p>The CFTC stated that the appendix approach ensures consistent treatment between new applicants and those that received earlier individual letters. Regulators described the goal as streamlining the process for addressing future requests.<\/p>\n<p><a href=\"https:\/\/news.bitcoin.com\/crypto-prediction-markets-move-into-mainstream-finance-as-institutional-interest-grows\/\">Prediction markets<\/a> have drawn increasing attention from federal regulators over the past two years. Platforms like <a href=\"https:\/\/srt.bitcoin.com\/polymarket-newsart\" target=\"_blank\" rel=\"noopener noreferrer\">Polymarket<\/a> and <a href=\"https:\/\/srt.bitcoin.com\/kalshi-may\" target=\"_blank\" rel=\"noopener noreferrer\">Kalshi<\/a> allow users to trade on the outcome of political, economic, and other real-world events, which have pushed regulators to clarify where event contracts fit under existing derivatives law.<\/p>\n<p>The no-action letter does not change the underlying legal status of event contracts. It narrows the scope of reporting obligations the <a href=\"https:\/\/news.bitcoin.com\/cftc-uses-microsoft-ai-tools-to-surveil-crypto-and-prediction-markets-chairman-tells-congress\/\">CFTC<\/a> will actively enforce while the broader regulatory framework continues to develop. Last month, CFTC Chairman Michael Selig <a href=\"https:\/\/news.bitcoin.com\/cftc-uses-microsoft-ai-tools-to-surveil-crypto-and-prediction-markets-chairman-tells-congress\/\">told<\/a> lawmakers that the regulator uses Microsoft AI tools to monitor <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-are-prediction-markets\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">prediction markets<\/a>.<\/p>\n<p>Operators that fall outside the terms of the letter are not covered and cannot assume identical protection. The CFTC said entities in that position need to file a direct request to be added to the appendix.<\/p>\n<p>The letter positions the CFTC as the primary federal regulator managing the compliance structure for <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-are-prediction-markets\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">prediction markets<\/a> operating in the United States, at least for now. The letter arrives as dozens of states <a href=\"https:\/\/news.bitcoin.com\/prediction-market-fight-deepens-as-40-states-push-back-on-cftc\/\">clash<\/a> with the CFTC in court over who holds regulatory authority across the <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-are-prediction-markets\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">prediction market<\/a> sector.<\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/cftc-drops-swap-reporting-duties-for-prediction-market-operators-across-the-us\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways The CFTC\u2019s Division of Market Oversight issued a blanket no-action letter on May 13, 2026, covering all swap data reporting for event contracts. The ruling relieves DCMs, DCOs, and their participants from SDR reporting duties, reducing compliance costs across prediction market operators. New entities seeking identical [&hellip;]<\/p>\n","protected":false},"author":19,"featured_media":72506,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/72505"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=72505"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/72505\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/72506"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=72505"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=72505"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=72505"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}