The U.S. Commodity Futures Trading Commission (CFTC) recently garnered significant attention in the financial and Derivative markets by issuing a series of "no-action letters" to Polymarket, PredictIt, Gemini , and LedgerX/MIAX. This is XEM as a significant relaxation of data compliance requirements, paving the way for these platforms to reduce their record-keeping burden and potentially use third-party clearing members in certain transactions.
According to information released on December 12, the CFTC affirmed that these no-action letters allow the regulatory agency to refrain from pursuing legal action or prosecution in cases involving failure to fully comply with certain data retention regulations for swap transactions, as well as failure to report binary options trading data to swap data repositories.
This is especially important for platforms like Polymarket and PredictIt, which often operate in complex legal environments while providing prediction markets related to politics, economics, and many other sensitive areas. Being partially exempt from reporting liability significantly reduces their operating costs and limits legal risks.
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