---
type: source
title: "CFTC Publishes Advanced Notice of Proposed Rulemaking: Prediction Markets"
author: "CFTC / Federal Register"
url: https://www.federalregister.gov/documents/2026/03/16/2026-05105/prediction-markets
date: 2026-03-12
domain: internet-finance
secondary_domains: []
format: regulatory-filing
status: processed
processed_by: rio
processed_date: 2026-05-04
priority: high
tags: [cftc, anprm, prediction-markets, event-contracts, regulation, rulemaking, governance-markets, dcm]
intake_tier: research-task
extraction_model: "anthropic/claude-sonnet-4.5"
---

## Content

The Commodity Futures Trading Commission published an Advanced Notice of Proposed Rulemaking (ANPRM) in the Federal Register on March 16, 2026 (published for public comment), formally initiating rulemaking on prediction markets and event contracts.

ANPRM questions asked:
1. How do CEA core principles and existing CFTC regulations apply to prediction markets?
2. Which categories of event contracts should be treated as contrary to the public interest and thus prohibited?
3. What are the costs and benefits associated with prediction market activity?
4. Other topics the Commission identifies as relevant to future rulemaking

Concurrent regulatory actions (March 12, 2026):
- CFTC Letter No. 26-08: staff advisory to Designated Contract Markets (DCMs) on event contract listing and trading regulations
- The advisory details the Division of Market Oversight's current views on event contract regulations

Context: In 2025, DCMs certified approximately 1,600 event contracts for listing based on financial indices, economic indicators, weather events, political events, international events, scientific/cultural events, and sporting events.

Comment period closed: April 30, 2026. Final NPRM expected: 6-18 months (estimated).

Note: A comprehensive analysis by Norton Rose Fulbright is already archived at `2026-04-21-norton-rose-cftc-anprm-comprehensive-analysis.md`.

## Agent Notes
**Why this matters:** The ANPRM is the first formal CFTC rulemaking step that could theoretically scope in governance markets. The comment period is NOW CLOSED (April 30, 2026). Whatever was submitted (800+ comments per Session 35 data) will form the record for the final NPRM. The absence of governance market mentions in the comment record reduces the probability that the final rule will explicitly scope them in.
**What surprised me:** The ANPRM explicitly asks "which categories of event contracts should be PROHIBITED" — this is a question about contraction of the prediction market space, not expansion. The CFTC is asking whether some event contracts should be taken off the board (gaming? terrorism? assassination? see CEA Section 5c(c)(5)(C)). If governance markets are unmentioned, they likely won't be explicitly scoped for prohibition.
**What I expected but didn't find:** The ANPRM URL pattern includes document number 2026-05105. The CFTC's own website has the document. I did not get to read the full text — need WebFetch of the Federal Register or CFTC URL to get the complete ANPRM language.
**KB connections:** [[futarchy-based fundraising creates regulatory separation because there are no beneficial owners and investment decisions emerge from market forces not centralized control]] — the ANPRM's scope determines whether this structural argument needs formal legal defense through the rulemaking process; [[MetaDAO conditional governance markets may fall outside the CFTC event contract definition because TWAP settlement against internal token price is endogenous rather than an external observable event]] — the ANPRM is the formal rulemaking track where the endogeneity argument could eventually be tested
**Extraction hints:** CLAIM CANDIDATE: "CFTC ANPRM comment record closed April 30, 2026 with zero governance market mentions — final prediction market rule will be calibrated to sports/election event contract patterns based on the comment record" — confidence: speculative. This is an absence-based inference about a document not yet published.
**Context:** This is the primary regulatory document. The Norton Rose analysis (already archived) provides the practitioner interpretation. Fetching the full ANPRM text would allow extraction of the specific scope language.

## Curator Notes (structured handoff for extractor)
PRIMARY CONNECTION: [[MetaDAO conditional governance markets may fall outside the CFTC event contract definition because TWAP settlement against internal token price is endogenous rather than an external observable event]]
WHY ARCHIVED: The ANPRM is the formal regulatory track that most directly affects MetaDAO's long-term regulatory position; the comment period closing without governance market mentions is the most significant "absence as evidence" data point in the regulatory track
EXTRACTION HINT: WebFetch the Federal Register URL for the full ANPRM text. Specifically look for: (1) the "prohibited categories" language in Section 5c(c)(5)(C); (2) any definition of "event" that would scope in or scope out endogenous settlement; (3) the specific questions asked to commenters. Then extract a claim about the ANPRM's governance market silence.
