Regulators propose rules for prediction markets

U.S. regulators have released their first proposed rules for overseeing prediction markets, outlining how they may evaluate contracts tied to sensitive or restricted events. The Commodity Futures Trading Commission said the framework would help determine whether contracts are against the public interest or violate the Commodity Exchange Act. The proposal says contracts involving terrorism, assassinations and war would fall under close scrutiny, while leaving some uncertainty around gamingrelated contracts, including certain sportslinked products. The proposal does not create a full ban on all event contracts in these categories. Instead, it sets out a review process and opens a 45day public comment period as the agency continues building a wider regulatory framework for the fastgrowing market.