The U.S. Commodity Futures Trading Commission, which positions itself as the top regulator overseeing prediction‑market operators such as Kalshi, Coinbase, Polymarket and Crypto.com, released an advisory on Friday reminding these firms that they must not bypass rigorous contract certification procedures intended to cover a broad spectrum of events.
The agency stated that “broad, template‑style certifications should not be submitted,” marking the second such warning in recent months about excessively generic filings.
Many of the “designated contract markets” supervised by the CFTC continue to self‑certify event contracts—i.e., prediction‑market contracts—as sweeping templates without providing the detailed terms and conditions for each possible variation, along with a succinct explanation and analysis of the product’s provisions, the underlying commodity, and its compliance with regulatory principles, the regulator noted.
By skirting this process, firms impede the CFTC’s ability to verify that they have furnished all required information, explanations and analysis, and that they have properly assessed the settlement methodology, data sources, and core‑principles compliance for every permutation of the contract.