The U.S. Commodity Futures Trading Commission (CFTC) recently issued a no-action letter to a certain blockchain platform, paving the way for its launch of event contracts and prediction market services in the U.S. This document marks the initial recognition of the blockchain prediction market ecosystem by regulators. According to the letter, the platform must adhere to strict risk control standards when operating prediction markets: participants are required to provide full collateral on a 1:1 basis, and the platform is prohibited from offering any form of leverage trading. At the same time, the CFTC has moderately relaxed the reporting thresholds for high-frequency trading data, but this does not weaken its core requirements for risk management. This move reflects a regulatory effort to strike a balance—encouraging financial innovation while preventing systemic risks. For prediction market projects exploring compliance pathways, this no-action letter could serve as a reference template for the industry.
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The U.S. Commodity Futures Trading Commission (CFTC) recently issued a no-action letter to a certain blockchain platform, paving the way for its launch of event contracts and prediction market services in the U.S. This document marks the initial recognition of the blockchain prediction market ecosystem by regulators. According to the letter, the platform must adhere to strict risk control standards when operating prediction markets: participants are required to provide full collateral on a 1:1 basis, and the platform is prohibited from offering any form of leverage trading. At the same time, the CFTC has moderately relaxed the reporting thresholds for high-frequency trading data, but this does not weaken its core requirements for risk management. This move reflects a regulatory effort to strike a balance—encouraging financial innovation while preventing systemic risks. For prediction market projects exploring compliance pathways, this no-action letter could serve as a reference template for the industry.