CFTC issues no-action letters to four prediction markets

The Commodities Futures Trading Commission (CFTC) has issued no-action letters to four different prediction markets. In a public announcement, the CFTC said it would give the all clear for “swap data reporting and recordkeeping regulations in response to requests from multiple registered entities.”

This is the second time since September that the CFTC has issued one of these no-action letters. While the September order only focused on QCX LLC., this December’s no-action grants “narrow” wiggle room regarding reporting to Polymarket US, LedgerX, PredictIt, and Gemini Titan.

No-Action Letters are effectively agreements between one entity and the CFTC that the government body won’t go after a company for an outlined issue.

In this case, the CFTC is giving these four companies some leeway on the data they’re required to submit. It should be mentioned that QCX LLC was snapped up by Polymarket earlier this year, allowing Polymarket to return to the US after it had been previously barred.

However, to keep the CFTC off their backs, prediction markets will have to ensure that they can cover every payout in full. They will also have to make sure that data pertaining to each contract is also documented.

CFTC relaxes reporting rules for four prediction markets

During the first year, a notable theme has been the easing of certain regulations or the allowance of developments to proceed. Regulators have overseen the prediction market’s rise in power in 2025. Kalshi and Polymarket have generated significant revenue while operating in ways that bypass certain state-level regulations.

As prediction markets aren’t covered by state gambling regulators, they can offer sportsbooks and more gambling where others can’t. This has seen an explosion in revenue and a flood of people picking up the new style of gambling.

The no-action letter is being seen as a way to allow these far busier companies time to smooth out any issues within their compliance standards. However, as cryptocurrency firms begin to move into the space, following the Polymarket model, the CFTC might have opened the floodgates to issues down the line when it comes to reporting data correctly.

Featured image: CFTC via Wikimedia Commons

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