CFTC Withdraws 2024 Event Contracts Proposed Rule and Sports Advisory

The Commodity Futures Trading Commission (CFTC) has announced the formal withdrawal of its notice of proposed rulemaking titled "Event Contracts," which was initially published on June 10, 2024. The regulator confirmed that it does not intend to finalize rules under that framework. In tandem with the withdrawal of the proposed rule, CFTC staff has also rescinded CFTC Staff Letter 25-36. The staff advisory, issued on September 30, 2025, addressed certain contract markets regarding sports event contracts. CFTC Chairman Michael S. Selig stated that the decisions demonstrate the Commission's commitment to supporting lawful market innovation. Selig characterized the withdrawn 2024 proposal as an overreach by the previous administration that imposed an outright prohibition on political event contracts ahead of the 2024 presidential election. Moving forward, the Commission plans to initiate a new rulemaking process. According to Selig, the upcoming framework will be based on a coherent interpretation of the Commodity Exchange Act designed to promote responsible innovation in the derivatives markets consistent with Congressional intent. Selig also addressed the withdrawal of the 2025 sports event advisory, noting that although the guidance was originally meant to clarify litigation issues, it inadvertently created market confusion and uncertainty. The regulator plans to collaborate with staff on a revised regulatory structure for event contracts.