The Commodity Futures Trading Commission's proposal is intended to separate the prediction market from casino gambling.

The U.S. Commodity futures trading Commission filed two motions on Friday to demarcate the line between federally regulated sweepstakes contracts and traditional casino gambling, with both measures providing for a 30-day hearing. The move comes after several states sued prediction market operators including Kalshi and Polymarket over allegations of illegal betting, and the commission filed backsuits to protect federal jurisdiction over contracts that the agency said fell outside state regulatory purview.

Suggestion one: combine the event promises into swaps.

The first proposal expands the definition of a swap to include event contracts, including those related to sports, politics, cultural activities and weather. The Commission identifies these products as financial instruments commonly known by traders as "swaps" and proposes to remove ambiguity. Chairman Michael Selig specifies that these products are commodity derivatives clearly within its purview under the Commodity Exchange Act and in its exclusive jurisdiction.[citation needed]

Suggestion two: separate the casino and betting.

The second proposal mandates the Commission's view that casino-style gambling products, including betting on sportsbooks and casino games, are excluded from the definition of a swap. Selig states that casino gambling products are not interracial, and as the Commission has done with other products historically regulated by the state, it provides clarity about its regulatory jurisdictional boundaries by mandating the exclusion of casino-type betting products from the SWAP definition.

It's a handicap between the state and prediction markets.

The two measures helped pave the way for a possible U.S. court battle over jurisdiction between federal and state governments. Cointelegraph reported in late September that Kalshi lost his case on appeal when courts ruled that Ohio and Tennessee could regulate sports event contracts under state gambling laws.

However, an April ruling by the United States Court of Appeals for the Third Circuit allowed Kalshi to conduct business in New Jersey while the appeals process continued and noted that Kalsha was likely to win arguments that federal law prevailed over New Jersey's provisions, all of which laid the groundwork for a court case. NFL also supported New Jersey agencies in its complaint to the U.S. Attorney General regarding Kalshe.

It's related.

A related magazine report noted that France is the most dangerous place in the world for Bitcoiners, with 90 attacks within 7 months.