The CFTC issued a no-action letter to Bitnomial, allowing the exchange to offer event contracts and prediction markets without strict reporting requirements. Bitnomial must provide consumer-facing data and collateralize all positions 1:1 for liquidity. This reflects growing acceptance of prediction markets by US regulators due to blockchain technology’s innovation.

Prediction markets gained momentum during the 2024 US elections, with platforms like Polymarket and Kalshi attracting institutional investors and cultural attention. In September 2025, Kalshi and Polymarket were featured in a South Park episode. Intercontinental Exchange (ICE) invested $2 billion in Polymarket the following month, valuing it at $9 billion.

Coinbase agreed to acquire The Clearing Company, a prediction market startup, in December. The deal is set to close in January 2026, coinciding with the US midterm elections, which are expected to increase trading volume on prediction markets.

Read more at Cointelegraph: CFTC Sends Bitnomial No-Action Letter, Eases Reporting Requirements