On February 4, the CFTC announced the withdrawal of a proposed rule on event contracts published in the Federal Register in June 2024. The proposal sought to clarify which types of event contracts, particularly those involving gaming, are covered by section 5c(c)(5)(C) of the Commodity Exchange Act. The CFTC cited ongoing state regulatory actions and litigation concerning its jurisdiction over event contract derivatives, as well as the interplay between federal law and state gambling statutes, as reasons for withdrawing the rule. The agency stated it does not intend to issue final rules based on the withdrawn proposal and would pursue any future regulatory action through proposing a new rule.

Additionally, CFTC staff withdrew an advisory issued September 30, 2025, which had addressed certain contract markets and sports-related event contracts. The staff letter contended that developments in the event contract market and experience among market participants had rendered the advisory unnecessary. In the CFTC’s announcement, Chairman Michael Selig stated that the agency would pursue a new rulemaking that aligns with a “rational and coherent interpretation of the Commodity Exchange Act . . . in line with congressional intent.”