Proposed Rule2026-02454
Event Contracts; Withdrawal of Proposed Regulatory Action
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
February 6, 2026
Issuing agencies
Commodity Futures Trading Commission
Abstract
The Commodity Futures Trading Commission ("Commission" or "CFTC") is formally withdrawing a notice of proposed rulemaking published on June 10, 2024, titled "Event Contracts." The Commission does not intend to issue final rules with respect to this proposal. If the Commission decides to pursue future regulatory action in this area, it will issue new proposed rules.
Full Text
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<title>Federal Register, Volume 91 Issue 25 (Friday, February 6, 2026)</title>
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[Federal Register Volume 91, Number 25 (Friday, February 6, 2026)]
[Proposed Rules]
[Pages 5386-5387]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-02454]
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COMMODITY FUTURES TRADING COMMISSION
17 CFR Part 40
RIN 3038-AF14
Event Contracts; Withdrawal of Proposed Regulatory Action
AGENCY: Commodity Futures Trading Commission.
ACTION: Notice of withdrawal of proposed rules.
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SUMMARY: The Commodity Futures Trading Commission (``Commission'' or
``CFTC'') is formally withdrawing a notice of proposed rulemaking
published on June 10, 2024, titled ``Event Contracts.'' The Commission
does not intend to issue final rules with
[[Page 5387]]
respect to this proposal. If the Commission decides to pursue future
regulatory action in this area, it will issue new proposed rules.
DATES: The Commission is withdrawing the proposed rules published at 89
FR 48968 (June 10, 2024) as of February 4, 2026.
FOR FURTHER INFORMATION CONTACT: Frank Fisanich, Acting Director, (202)
418-5949, <a href="/cdn-cgi/l/email-protection#b8deded1cbd9d6d1dbd0f8dbdeccdb96dfd7ce"><span class="__cf_email__" data-cfemail="4721212e3426292e242f072421332469202831">[email protected]</span></a>, Division of Market Oversight, Commodity
Futures Trading Commission, Three Lafayette Centre, 1155 21st Street
NW, Washington, DC 20581.
SUPPLEMENTARY INFORMATION:
Background
On June 10, 2024, the Commission published a notice of proposed
rulemaking in the Federal Register proposing amendments to its rules
concerning event contracts in certain excluded commodities.
Specifically, the Commission proposed amendments to further specify
types of event contracts that fall within the scope of section
5c(c)(5)(C) of the Commodity Exchange Act (``CEA'') \1\ and are
contrary to the public interest, such that they may not be listed for
trading or accepted for clearing on or through a CFTC-registered
entity. Among other things, the Commission proposed to further specify
the types of event contracts that involve ``gaming.''
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\1\ 7 U.S.C. 7a-2(c)(5)(C).
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Withdrawal of Proposed Rules
The Commission is withdrawing these proposed rules to reconsider
them in light of various forms of state regulatory actions and
litigation concerning the Commission's exclusive jurisdiction over
event contract derivatives listed on designated contract markets and
the proper application of the swap and excluded commodity definitions
under the Commodity Exchange Act, including issues related to the
preemption of state gambling, wagering, and gaming laws in relation to
sports-related event contracts laws and what activities constitute
``gaming'' under the CEA.\2\ Thus, the Commission no longer intends to
issue final rules with respect to the proposal. If the Commission
decides to pursue future regulatory action in this area, it will do so
by publishing new proposed rules or other issuance consistent with the
requirements of the Administrative Procedure Act, as applicable.
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\2\ See, e.g., State ex rel. Nevada Gaming Control Board v.
Blockratize, Inc. et. al, Case No. 26-OC-00012 1B (Nev. 1st Jud.
Dist. Ct. Jan. 16, 2026); Coinbase Financial Markets, Inc. v. Raoul,
et al., No. 1:25-cv-15406 (N.D. Ill. Dec. 18, 2025); Robinhood
Derivatives, LLC v. Dreitzer, et al., No. 25-7831 (9th Cir. Dec. 12,
2025); KalshiEX LLC v. Hendrick, et al., No. 25-7516 (9th Cir. Nov.
28, 2025); N. Am. Deriv. Exch., Inc. v. State of Nevada et al., No.
25-7187 (9th Cir. Nov. 14, 2025); KalshiEX LLC v. Martin, No. 25-
01892 (4th Cir. Aug. 6, 2025); KalshiEX LLC v. Flaherty, No. 25-
01922 (3d Cir. May 15, 2025).
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Executive Order 12866
The Office of Management and Budget has determined that this action
is not a significant regulatory action as defined in Executive Order
12866, as amended, and therefore it was not subject to Executive Order
12866 review.
Issued in Washington, DC, on February 4, 2026, by the
Commission.
Christopher Kirkpatrick,
Secretary of the Commission.
Note: The following appendix will not appear in the Code of
Federal Regulations.
Event Contracts; Withdrawal of Proposed Regulatory Action--Commission
Voting Summary
On this matter, Chairman Selig voted in the affirmative. No
Commissioner voted in the negative.
[FR Doc. 2026-02454 Filed 2-5-26; 8:45 am]
BILLING CODE 6351-01-P
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