The US CFTC issued a no-action letter to four prediction market operators, including Polymarket, regarding data rules issues.
PANews reported on December 12th that, according to CoinDesk, the U.S. Commodity Futures Trading Commission (CFTC) issued no-action letters on Thursday to the operators of prediction market platforms Polymarket, PredictIt, Gemini, and LedgerX/MIAX, announcing that these companies are not required to comply with certain record-keeping requirements as long as they meet other specific requirements, and that these companies may be able to clear contracts through third-party clearing members. In a press release, the CFTC stated that the no-action letters mean that the regulator will not take any enforcement action (i.e., will not bring lawsuits against these companies for violations) regarding their compliance with "certain record-keeping requirements related to swap transactions and failure to report data related to binary options trading to swap data repositories."
The CFTC stated, "No-action letters apply only to specific circumstances and are similar to those issued to designated contract markets and derivatives clearing organizations in other similar situations." Under a no-action letter, the issuer must: ensure that its contracts are adequately collateralized at all times; clear contracts only through its designated platform; publish all relevant data on its platform after contract execution; and comply with other specific swap transaction record requirements.
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