{"id":78949,"date":"2026-10-02T06:51:11","date_gmt":"2026-10-02T06:51:11","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/cftc-wants-event-contracts-defined-as-swaps-but-not-casino-games\/"},"modified":"2026-10-02T06:51:11","modified_gmt":"2026-10-02T06:51:11","slug":"cftc-wants-event-contracts-defined-as-swaps-but-not-casino-games","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/cftc-wants-event-contracts-defined-as-swaps-but-not-casino-games\/","title":{"rendered":"CFTC Wants Event Contracts Defined as Swaps, but Not Casino Games"},"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 sent two rules to the White House on Sept. 28 to redraw the legal definition of a swap.<\/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\">One adds event contracts; the other excludes casino-style gambling and takes effect on publication.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<h2>Two Rules, No Text Yet<\/h2>\n<p>The White House\u2019s Office of Information and Regulatory Affairs (OIRA) received both rules on Sept. 28, according to its <a href=\"https:\/\/www.reginfo.gov\/public\/do\/eoDetails?rrid=1538563\" target=\"_blank\" rel=\"noopener noreferrer\">regulatory review records<\/a>. The first, a proposed rule titled \u201cFurther Definition of \u2018Swap\u2019 to Include Event Contracts,\u201d would go out for public comment before taking effect.<\/p>\n<p>The second, an interim final rule excluding \u201ccasino-style gambling products\u201d, would take effect once published, with comments collected afterward. The CFTC marked neither as economically significant, and neither listing includes rule text or explains what counts as a casino-style product.<\/p>\n<p>Federal law gives the CFTC exclusive jurisdiction over swaps traded on its registered exchanges \u2013 hence the importance of the label. <a href=\"https:\/\/www.bitcoin.com\/get-started\/defi-and-web3\/prediction-markets\/what-are-prediction-markets\/\" target=\"_blank\" rel=\"noopener noreferrer\">Prediction markets<\/a> such as Kalshi argue that their sports contracts are swaps, which would put them beyond the reach of state gambling regulators. The CFTC under Chairman Michael Selig has backed that position and sued at least nine states over efforts to block the contracts.<\/p>\n<p>The courts have not settled the question. The Third Circuit sided with Kalshi against New Jersey in April. <a href=\"https:\/\/news.bitcoin.com\/igaming\/ninth-circuit-ruling-sets-up-a-kalshi-supreme-court-fight-on-sept-3\/\">The Ninth Circuit ruled for Nevada in August<\/a>. On Sept. 25, three days before the rules reached the White House, a unanimous Sixth Circuit panel held that <a href=\"https:\/\/news.bitcoin.com\/igaming\/sixth-circuit-turns-kalshis-own-words-against-two-state-loss\/\">Kalshi\u2019s sports contracts are not swaps<\/a>. The panel found that sporting events lack the inherent financial consequences the statute requires. New Jersey has asked the Supreme Court to settle the split.<\/p>\n<p>A new definition may not end the fight on its own. <a href=\"https:\/\/www.opn.ca6.uscourts.gov\/opinions.pdf\/26a0272p-06.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">In its opinion, the Sixth Circuit held in the alternative<\/a> that \u201ceven assuming that Kalshi\u2019s sports-event contracts are swaps,\u201d federal law neither expressly nor impliedly preempts Ohio\u2019s or Tennessee\u2019s gambling laws.\u201d<\/p>\n<p>The casino carveout answers a worry raised in the same litigation. Ruling against Kalshi, the Sixth Circuit warned that reading the swap definition broadly \u201cwould likely encompass virtually every kind of wager that could exist, including classic casino games and charity raffles.\u201d<\/p>\n<p>There is also a procedural question: the Dodd-Frank Act directs the CFTC and the Securities and Exchange Commission (SEC) to further define \u201cswap\u201d jointly, in consultation with the Federal Reserve. Both OIRA listings name only the CFTC. In June, the two agencies issued a <a href=\"https:\/\/www.cftc.gov\/PressRoom\/PressReleases\/9258-26\" target=\"_blank\" rel=\"noopener noreferrer\">joint request for comment on derivatives definitions<\/a>. At the time, SEC Chairman Paul Atkins said clarification was \u201clong overdue on Title VII definitional issues, including event-based products.\u201d Once OIRA finishes its review, the CFTC can publish the rules in the Federal Register.<\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/igaming\/cftc-wants-event-contracts-defined-as-swaps-but-not-casino-games\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways The CFTC sent two rules to the White House on Sept. 28 to redraw the legal definition of a swap. One adds event contracts; the other excludes casino-style gambling and takes effect on publication. Two Rules, No Text Yet The White House\u2019s Office of Information and [&hellip;]<\/p>\n","protected":false},"author":3947362403,"featured_media":78950,"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\/78949"}],"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\/3947362403"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=78949"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/78949\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/78950"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=78949"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=78949"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=78949"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}