Partner Renato Mariotti’s Comment Letter to CFTC Proposes Holistic Regulatory Framework for Prediction Markets

On February 26, 2025, the CFTC published all public comments it received for the upcoming Prediction Markets Roundtable, including Paul Hastings partner Renato Mariotti’s comment letter advocating for a practical, holistic regulatory framework for prediction markets. The letter, written on behalf of our client StoneX Group, recognizes that prediction markets are an invaluable tool for hedging, information aggregation and price discovery, and therefore calls for an approach that:

• Includes a new “public interest” test for event contracts.
• Brings clarity to the “Special Rule.”
• Deems certain event contracts presumptively permissible.
• Creates an expedited review process for event contracts.

We expect that once the CFTC rolls out a regulatory framework for event contracts, this product category will grow quickly.