The U.S. Commodity Futures Trading Commission (CFTC), under new Chairman Mike Selig, has formally withdrawn a 2024 proposed rule that sought to ban event-based contracts tied to political outcomes. The regulator also scrapped a related September advisory, signaling a major policy reversal that favors the growth of regulated prediction markets.
The withdrawn 2024 rule had equated political event contracts with illicit contracts on war, terrorism, and assassination, deeming them "contrary to the public interest." This rule never advanced to a final stage. Chairman Selig criticized the proposal as the prior administration's "frolic into merit regulation" and stated the CFTC will now advance a new rulemaking grounded in a "rational and coherent interpretation" of the Commodity Exchange Act to promote responsible innovation.
This regulatory shift has immediate implications for key market participants. Plus500, a London-listed broker, is leveraging this clearer path to expand its U.S. retail platform, Plus500 Futures. The firm is now offering event-based contracts tied to economic data, financial milestones, and geopolitical developments. Crucially, Plus500 is not just distributing these products; it is acting as a direct clearing member through Kalshi Klear LLC, the clearinghouse for prediction market exchange Kalshi. This deep integration into the trade lifecycle marks a strategic departure for Plus500, which built this U.S. infrastructure through its 2021 acquisition of Cunningham Commodities.
The timing aligns with a broader industry trend. In December 2025, Plus500 was named the clearing partner for the FanDuel Prediction Markets platform launched in partnership with CME Group. The firm is now applying those same execution and clearing capabilities to its own customer base. The CFTC's move to develop formal rules, rather than enforce broad prohibitions, favors established firms with the capital, compliance capacity, and clearing infrastructure like Plus500 and Kalshi.
