CFTC staff presses exchanges to justify safeguards on political speech prediction markets
- —CFTC staff call speech contracts 'readily susceptible to manipulation'
- —Exchanges must address four areas: speaker obligations, pressure, verification and surveillance
- —Kalshi's sampled mention markets showed volumes from $5,333 to $125,776 on Sept. 23
- —CFTC cited cases: a teleprompter operator earned $107,539; George Santos traded his own appearance
Why it matters: Tighter scrutiny of prediction markets could curb listings of political contracts and reduce their liquidity.
Source: CryptoSlate