The US Commodity Futures Trading Commission has told designated contract markets to end domestic geographic restrictions that conflict with its impartial-access requirements within 30 days or explain why compliance is not feasible. The interpretation could directly affect prediction-market platforms that restrict contracts in certain states.
The CFTC interpretation, issued on November 5, applies Commission Regulation 38.151(b) to geographic access. Chairman Michael Selig said derivatives markets should operate uniformly on a national basis and described geographic restrictions as inconsistent with the Commodity Exchange Act's impartial-access framework.
Exchanges have the option to submit an explanation to the Division of Market Oversight if they cannot comply within the deadline. They must also ensure that intermediaries accessing their markets do not impede impartial access or provide a similar explanation. The agency said potential enforcement decisions will consider the facts and circumstances of each case.
The practical effect is complicated by ongoing state litigation. SBC Americas reported that platforms including Kalshi and Polymarket have restricted some products in jurisdictions where courts or regulators have challenged sports event contracts. The CFTC release does not identify individual companies or state how an exchange should resolve a direct conflict with a court order.
CDC Gaming said the interpretation also reaches intermediaries and could affect operators that currently limit prediction products to protect state sportsbook licences. The 30-day window begins a compliance and explanation process rather than automatically reopening every restricted market.
