The CFTC's notice of proposed rulemaking for prediction markets drew various comments from the public, including the crypto industry.
"Political event contracts should not be equated with gambling on games of chance like the Super Bowl. Rather, elections have significant economic implications," Dragonfly's Jessica Furr and Bryan Edelman, its counsel, wrote in a letter to CFTC."These contracts were designed to serve crucial risk hedging functions, aligning with the requirements of the Commodity Exchange Act , and offer valuable predictive data to the public.
According to the CEA, the three-step process requires the CFTC to assess whether a contract involves an excluded commodity, whether it engages in specified activities, and whether it's contrary to the public interest before banning it.