meta_id 3228067

On June 10, 2026, the Commodities Futures Trading Commission (CFTC) published a Notice of Proposed Rulemaking seeking public comment on amendments to CFTC Regulation 40.11 and the addition of Appendix F to part 40. The proposal establishes a structured framework for evaluating whether event contracts listed for trading by CFTC-registered entities involve activities enumerated in Section 5c(c)(5)(C) of the Commodity Exchange Act. The CFTC observed growth in the number and variety of event contracts listed for trading, including contracts referencing sporting events. Section 5c(c)(5)(C) of the Commodity Exchange Act prohibits contracts involving terrorism, assassination, war, gaming, or conduct unlawful under federal or state law. The proposal sets out a 90-day review process with critical procedural protections and establishes a set of public interest factors the Commission would apply on a contract-by-contract basis. The proposal also defines key statutory terms, including "involve" and "gaming." CFTC Chairman Michael S. Selig said the proposal gives the Commission "a durable, transparent framework to identify the contracts Congress directed us to scrutinize while letting legitimate markets move forward." The rulemaking is narrowly tailored to address one aspect of an Advanced Notice of Proposed Rulemaking relating to prediction markets that the Commission published in March 2026, which may lead to further rulemaking. The comment period for this Notice of Proposed Rulemaking is 90 days from publication. Responses can be submitted through the CFTC's website. The proposal affects CFTC-registered entities listing event contracts for trading.