The U.S. Commodity Futures Trading Commission (CFTC) has issued another warning to prediction market operators, reinforcing its scrutiny of how event contracts are submitted for regulatory review. The agency said some exchanges are using broad, template-style self-certifications that make it harder for regulators to determine whether individual contracts meet federal requirements.

Regulators Flag Template Filings

In its latest advisory, the CFTC’s Division of Market Oversight said it has seen designated contract markets file sweeping template certifications that cover numerous potential event contracts with differing settlement methods or data sources. Designated contract markets are CFTC-regulated exchanges that may list futures, options, and certain event contracts under agency rules. The agency said broad filings can limit its ability to evaluate whether each contract complies with regulatory standards, including protections against manipulation and suitable settlement procedures.

The advisory said exchanges should not submit blanket template certifications that cover a wide range of unrelated events. Instead, filings should include enough detail about the specific contract terms, the underlying event, the settlement methodology, and the exchange’s compliance analysis.

The CFTC added that closely related contracts may still be certified together when they share common features and use the same or similar settlement mechanisms.

Prediction Market Listings Have Expanded

The guidance comes amid rapid growth in prediction market activity over the past 18 months. Platforms have introduced thousands of contracts linked to sports, politics, economic indicators, and other real-world events, increasing the number of listings regulators must review.

The CFTC emphasized that firms relying on the self-certification process remain responsible for showing that their products comply with the Commodity Exchange Act and Commission regulations. Although self-certification allows exchanges to list products without prior approval, it does not remove their duty to provide complete and accurate information for regulatory review. That distinction is important for event contracts because the agency must be able to assess the contract’s terms, reference source, and settlement process before determining whether the filing raises compliance concerns.

Continued Oversight of Event Contracts

The notice marks the second recent warning from the CFTC about generalized self-certifications, highlighting the agency’s expectation that prediction market operators improve their compliance practices. The guidance comes as federal regulators continue developing oversight for a fast-growing sector that includes both traditional financial firms and crypto-focused platforms.

Market operators are expected to adjust their filing practices by submitting more detailed, contract-specific materials. More complete submissions could reduce the likelihood of regulatory delays or compliance concerns as the prediction market industry continues to expand.