A US financial regulator has granted a no-action letter to Bitnomial Exchange, which allows it to offer event contracts and prediction markets.
Under this exception, the Commodity Futures Trading Commission (CFTC) excludes Bitnomial from strict swap data reporting rules that apply to fast-moving platforms issuing many contracts daily.
However, transparency requirements remain: the exchange must publish consumer-facing timestamp and sales data on its website and must supply requested information to the regulator.
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All positions must be fully collateralized, which ensures each contract is backed 1:1 to maintain liquidity and minimize risk.
According to the CFTC’s letter, event contracts on the Bitnomial platform will operate within defined guardrails. Platforms with large transaction volumes often struggle under existing reporting regimes, and this tailored relief aims to balance innovation and oversight.
By requiring full collateralization and ensuring data access, the no-action letter supports both market dynamism and consumer safety.
Even as reporting mandates are eased, Bitnomial and its users must maintain transparent records and enable regulator access when necessary. This model could offer a framework for how trading formats can coexist with compliance standards in the crypto industry.
The ORACLE Act was reintroduced in the New York State Assembly to set stricter rules for platforms that offer prediction markets. What does the legislation cover? Read the full story.
