The Commodity Futures Trading Commission (CFTC) is reviewing the regulation of prediction markets, particularly the so-called "mention markets." Sources familiar with the matter confirmed this to CNBC.
In response, prediction market Kalshi has taken down its sports-related mention markets, while competitor Polymarket does not operate mention markets on its CFTC-regulated U.S. exchange.
Separately, it has been reported that JPMorgan debanked Polymarket last year.
Most scrutinized
Mention markets are among the most scrutinized offerings in prediction markets. Critics view them as easily manipulable, and some platforms do not offer them.
Kalshi saw about $3.3 million in trading volume on mention markets last month.
In July, the CFTC began investigating a former teleprompter operator who allegedly made $90,000 betting on the content of Trump’s speeches.
Meeting next week
This investigation comes ahead of a meeting of the CFTC's Innovation Advisory Committee on August 20.
A Washington state judge recently issued an order blocking several of Kalshi's markets from operating.
