On 04 February 2026, the US CFTC formally withdrew the notice of proposed rulemaking titled “Event Contracts” that had been published on 10 June 2024 vide CFTC Staff Letter 26-04. The US CFTC confirmed it does not intend to issue final rules with respect to the proposal and also withdrew the Staff Advisory on Certain Contract Markets (Staff Letter 25-36) issued on 30 September 2025.
The US CFTC Chairman stated it was withdrawing the proposed rules to reconsider them in light of various forms of state regulatory actions and litigation concerning the US CFTC’s exclusive jurisdiction over event contract derivatives listed on designated contract markets. Chairman Selig characterised the 2024 proposal as a departure into merit regulation and indicated the Commission would advance a new rulemaking grounded in the Commodity Exchange Act. He further noted that the 2025 staff advisory had inadvertently created confusion and uncertainty for market participants.
The withdrawal effectively removes the prior administration’s proposed prohibition on political and sports related event contracts. Chairman Selig has directed to commence a new rulemaking process to establish comprehensive, principles based standards for event contracts rather than categorical bans.
(Source: https://www.cftc.gov/PressRoom/PressReleases/9179-26)
