The U.S. Commodity Futures Trading Commission (CFTC) has warned prediction market operators against broadly self-certifying template event contracts.
The CFTC cautioned against the practice of broadly self-certifying template event contracts by prediction market operators. This warning comes as the regulator expressed concerns that such self-certification hinders their ability to ensure compliance with federal requirements, particularly those related to preventing market manipulation. The advisory issued by the CFTC staff highlighted instances where exchanges have engaged in self-certification, potentially compromising regulatory oversight.
