U.S. CFTC moves to fold event contracts into swaps regulations as legal fight rages
60-second summary
The U.S. CFTC proposes a formal rule to reclassify event‑based contracts, such as those offered on Kalshi, as swaps, bringing them under the agency’s oversight and requiring registration, reporting and margin standards; this move intensifies the ongoing legal battle, could broaden regulatory reach, and may pressure similar platforms to adapt compliance structures, affecting market liquidity.
The derivatives regulator is proposing a formal rule to include certain contracts traded on platforms like Kalshi's as swaps that require the agency's oversight.