Commodity Futures Trading Commission withdraws event contracts rule proposal and rescinds sports event contracts staff advisory as it plans a new rulemaking

The Commodity Futures Trading Commission has withdrawn its June 10, 2024 notice of proposed rulemaking on “Event Contracts” and said it does not intend to issue final rules based on that proposal. Commission staff also withdrew CFTC Staff Letter 25-36, a Sept. 30, 2025 staff advisory to certain contract markets. Chairman Michael S. Selig characterised the 2024 proposal as an outright prohibition on political contracts ahead of the 2024 presidential election and said the Commission will advance a new event contracts rulemaking grounded in an interpretation of the Commodity Exchange Act. He said the withdrawn 2025 sports event contracts advisory, while intended to highlight litigation considerations, inadvertently created confusion and uncertainty for market participants. The Commission indicated it will pursue a new event contracts rulemaking, but did not provide a timeline or further procedural details.