The Chairman of the U.S. Commodity Futures Trading Commission said that new rules for prediction markets will be formulated.

The head of the main derivatives regulatory agency on Wall Street, the U.S. Commodity Futures Trading Commission (CFTC), said on Thursday that new rules will be established for the prediction market industry with a market size of tens of billions of dollars. "Now is the time to establish clear rules and make it clear to the public that the CFTC supports responsible innovation in these markets," CFTC Chairman Michael Selig said in a prepared statement. "In line with my commitment to promoting responsible innovation in the cryptocurrency market, I will continue to support the responsible development of event contract markets." Prediction market platforms, such as Polymarket and Kalshi Inc., allow customers to trade on various future events with a "yes/no" outcome, ranging from whether the U.S. government will shut down on Saturday to which movie will win the Oscar for Best Picture, covering a wide range of events. Despite opposition from some state gambling regulatory agencies, trading activity on prediction market platforms continues to surge.