US CFTC issues non-enforcement letters to Polymarket and three other prediction markets regarding data rule issues

CoinVoice has learned that the U.S. Commodity Futures Trading Commission (CFTC) on Thursday issued no-action letters to the operators of prediction market platforms Polymarket, PredictIt, Gemini, and LedgerX/MIAX, announcing that as long as these companies meet certain other requirements, they are not required to comply with some recordkeeping regulations and may clear contracts through third-party clearing members.

In the press release, the CFTC stated that the no-action letter means that the regulatory agency will not take enforcement action regarding these companies’ compliance with “certain recordkeeping requirements related to swap transactions, and for not reporting data related to binary options trading to swap data repositories” (i.e., no lawsuits based on these companies’ violations).

The CFTC said: “The no-action letter is limited to specific circumstances and is similar to no-action letters issued to other designated contract markets and derivatives clearing organizations.” Under the no-action letter, issuers must: ensure that their contracts are fully collateralized at all times; clear contracts only through their designated platforms; publish all relevant data on their platforms after contract execution; and comply with other specific swap transaction recordkeeping requirements.