CFTC Warns Prediction Market Platforms of Incentive Plan Filing Deficiencies

TechFlow News, August 13. According to CoinDesk, the U.S. Commodity Futures Trading Commission (CFTC) issued guidance documents on Wednesday, warning prediction market platforms such as Kalshi and Polymarket that their incentive program filings have procedural or substantive deficiencies, hindering regulators from assessing compliance.

The CFTC noted that certain high trading volume rewards may induce participants to trade solely to meet targets, increasing fraud risks such as money laundering transactions and pre-arranged transactions; market maker programs that guarantee returns or cover losses through subsidies and rebates may similarly foster market manipulation. The agency proposed its first prediction market rules in June this year and continues to regulate industry development through guidance.