CFTC Proposes New Framework for Regulating Prediction Markets
Link: https://www.jdsupra.com/legalnews/rewriting-the-rulebook-the-cftc-s-2851209
The Commodities Futures Trading Commission (CFTC) has proposed a new framework for regulating prediction markets. Comments are due July 27, 2026. The proposal would establish a more structured framework for determining when event contracts may be prohibited as contrary to the public interest.
The K&L Gates article explains the history of the CFTC’s role in regulating event contracts arising out of provisions of the 2010 Dodd-Frank Act reforming derivatives market regulation and summarizes a number of legal arguments that are expected to be used to challenge the proposal if adopted as being beyond the CFTC’s authorities.
Why It Matters
The Commission has continued to observe growth in the number and variety of event contracts listed for trading by CFTC-registered entities, including contracts referencing sporting events. In light of these developments, the proposal would establish a structured framework for evaluating whether such contracts involve an activity enumerated in Section 5c(c)(5)(C) of the Commodity Exchange Act —activity that involves terrorism, assassination, war, gaming, or conduct that is unlawful under federal or state law—and, if so, whether that contract is contrary to the public interest.
HUD Issues Mortgagee Letters (ML) Modifying FHA Mortgage Loan Policies to Reduce Regulatory Burden in accordance with Trump Executive Order
The Single Family Housing Policy Handbook 4000.1 is a consolidated guide of all FHA operating policies and requirements the agency follows in administering federal single family housing lending programs. Mortgage Letters are the mechanism it uses to update the Handbook. FHA-insured (backed) mortgages allow buyers to purchase homes with lower down payments and more flexible credit requirements than conventional (uninsured) loans. FHA insured mortgages are issued by private lenders and are not part of the Ginnie Mae, Fannie Mae, or Freddie Mac programs.
Why It Matters
Interchange fees (a/k/a swipe fees) are transaction fees charged by the card issuing bank to the merchant’s acquiring bank whenever a customer uses a credit or debit card. The fee is charged to cover the issuing banks costs in providing and maintaining the card, handling fraud risk, and offering rewards programs. All told, U.S. merchants paid an estimated $176 billion in total card processing fees in 2024.
The Handbook is almost 1900 pages long and is not in the GTM Regpack mortgage content for banks or nonbanks. It is available on the HUD (parent agency) website for viewing. Mortgage Letters updating the Handbook) should be available through Ascent Horizon/doc feed sourced to the HUD website if requested.
