NEW YORK, April 21, 2026 /PRNewswire/ — ProphetX, America’s #1 sports prediction market, submitted a comment letter to the U.S. Commodity Futures Trading Commission (CFTC) in response to the Commission’s Advance Notice of Proposed Rulemaking (ANPR) on Prediction Markets. ProphetX welcomes and supports the Commission’s efforts to establish a clear, durable federal regulatory framework for sports event contracts and the broader prediction markets industry.
ProphetX urges the Commission to, for the first time, utilize its express statutory authority under Section 4(c) of the Commodity Exchange Act (CEA) to establish a conditions-based framework for the listing of sports event contracts, with Section 4(c) providing a durable and direct basis for federal preemption of conflicting state gaming laws.
ProphetX’s letter follows its November 2025 announcement that it filed applications with the CFTC to register as a Designated Contract Market (DCM) and a Derivatives Clearing Organization (DCO). Upon approval, ProphetX would become the first regulated exchange and clearinghouse in the United States built specifically for sports-based event contracts, which will serve as the foundation for an evolving event contracts platform.
“We are asking the CFTC to use the exclusive statutory authority Congress has given it to both preempt state action against nationwide derivatives markets and establish a framework that puts investors first, supports innovation, and allows event contract markets to continue to grow,” said ProphetX CEO and Co-Founder Dean Sisun. “ProphetX looks forward to leveraging our deep experience with sports event markets to partner with the CFTC and its staff throughout the rulemaking process.”
In the letter, ProphetX called for a uniform federal framework that occupies the regulatory field, protects participants, ensures market integrity, and promotes responsible innovation. These key recommendations include:
- Building on the Dodd-Frank Act’s enactment of the special rule for event contracts in the CEA, which cemented CFTC jurisdiction over event contracts, including those that may involve gaming.
- Utilizing CEA Section 4(c) as the most durable path forward to establish a conditions-based exemption for the class of sports event contracts that solidifies federal preemption in order to address jurisdictional uncertainty and definitional ambiguities under the special rule.
- Utilizing Section 4(c) to codify the Commission staff’s recent no-action relief for technology service vendors into binding Commission-level requirements, also providing a complementary, independent basis for federal preemption.
- Affirming that once event contracts are listed and cleared through organized markets, they have entered the broader financial system and should be treated and regulated as financial instruments.
To read ProphetX’s full comment letter, click here.
About ProphetX:
Founded in 2018, ProphetX is America’s leading sports prediction market. The company is building the first regulated U.S. exchange purpose-built for sports-based event contracts. Its mission is to create the world’s most trusted and innovative marketplace where anyone can participate in event outcomes.
Media Contact:
ProphetX Newsroom
press@prophetexchange.com
www.getprophetx.co
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SOURCE ProphetX
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