CFTC warns against market manipulation risks and requires exchanges to explain protective measures

The Market Supervision Division of the CFTC has released a consultation document, pointing out that contracts linked to the speech or interaction of specific individuals pose a higher risk of manipulation, and requiring exchanges to explain protective measures on a contract by contract basis, including the independence of outcome decision-makers, external verification capabilities, and monitoring adaptability. This document does not constitute a binding rule and does not prohibit such markets. Kalshi has launched the relevant market and stated that a response has been made. The CFTC revealed that a White House teleprompter operator had made a profit of $107500 by trading such contracts using pre exposure speech scripts. (Source: CryptoSlate)