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CFTC Opens the Door for Passive Software Providers in Derivatives Markets
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September 28, 2026
CFTC Opens the Door for Passive Software Providers in Derivatives Markets
By: John Mikuta
In a new no-action letter, the Commodity Futures Trading Commission (“CFTC”) recently opened the door for software developers building software to facilitate trading in derivatives and futures. The CFTC’s Market Participants Division (“MPD”) issued a no-action position providing that it would not recommend bringing an enforcement action against a “passive software provider,” or “PSP”, for failing to register as an introducing broker (“IB”) or associated person of an IB under the Commodity Exchange Act (“CEA”).[1] As background, the CEA requires any person who, for compensation or profit, “is engaged in soliciting and in accepting orders” for futures and swaps to register as an IB.[2] Individuals performing that work for an IB must also register themselves as associated persons.[3] The CFTC…
Trust the Future You Trade: Lessons About Prediction Market Surveillance from the DACOM Summit
September 23, 2026
Trust the Future You Trade: Lessons About Prediction Market Surveillance from the DACOM Summit
By: John Mikuta
Prediction markets are no longer a niche offering confined to a small corner of the internet. The rapid growth of prediction markets has launched them into the mainstream as a meaningful part of the financial ecosystem. But with that growth comes many of the same market integrity and compliance challenges that more traditional financial markets have long encountered. Prediction markets have faced public scrutiny over…
High Wire Act
September 22, 2026
High Wire Act
By: James Trusty
The federal statute known as the Wire Act (18 U.S.C. § 1084) has had a tumultuous history. For many years, the DOJ interpreted it to include restrictions on both sporting events and non-sporting contests. That changed dramatically in 2011, when the Office of Legal Counsel (“OLC”), responding to states seeking clarification before establishing state lotteries, published an analysis of the Wire Act. After a thorough…
Maryland’s Ever-Changing Gaming Landscape: Evolution, Adaptation, and Legal Tension
March 23, 2026
Maryland’s Ever-Changing Gaming Landscape: Evolution, Adaptation, and Legal Tension
By: Abbey Block
Maryland’s Ever-Changing Gaming Landscape: Evolution, Adaptation, and Legal Tension Earlier this month I had the opportunity to attend the 3rd annual Town Hall Meeting, hosted by Morgan State University’s Center for Data Analytics and Sports Gaming Research and National Council of Legislators from Gaming States and participate in a lively discussion about the ever-changing face of gambling. Our panel covered the latest and greatest developments…
Major League Development: CFTC and MLB Agree to Monitor the Integrity of Prediction Markets
March 19, 2026
Major League Development: CFTC and MLB Agree to Monitor the Integrity of Prediction Markets
By: John Mikuta
In a watershed moment for the prediction market industry, the Commodity Futures Trading Commission (“CFTC”) signed a Memorandum of Understanding (“MOU”) with Major League Baseball (“MLB”) today. According to the CFTC’s press release, the groundbreaking agreement “establishes a framework for the CFTC and MLB to discuss, cooperate, and exchange information concerning issues of common interest including protecting the integrity of professional baseball and the relating…
Jim Trusty on Smart Legal Moves for Clients Under Pressure
March 18, 2026
Jim Trusty on Smart Legal Moves for Clients Under Pressure
By: Ifrah Law
A veteran federal prosecutor and formidable white-collar litigator, Jim Trusty clears a lane for clients facing a gauntlet of criminal charges, civil actions, investigations, and regulatory proceedings. From professional athletes facing sports wagering accusations or indictments, to gaming companies and executives involved in regulatory or white-collar matters, clients rely on Jim’s legal strategy, political savvy, and prosecutorial insights when the stakes are highest. Protecting iGaming…
Gambling on Skill: Enforcement of Gambling Laws Against Skill Games in Outlier States
March 10, 2026
Gambling on Skill: Enforcement of Gambling Laws Against Skill Games in Outlier States
By: Jordan Briggs
In many states, people can legally pay entry fees to participate in a skill game and win cash prizes. For most states that allow participants to wager on their own skilled gameplay, the analysis for whether a certain game qualifies as a legal skill game turns on whether the game is one of chance or of skill. Each state has its own test to determine…
CFTC Plants the Flag on Regulating Prediction Markets
March 4, 2026
CFTC Plants the Flag on Regulating Prediction Markets
By: John Mikuta
On February 25, 2026, the Commodity Futures Trading Commission (“CFTC”), the governmental body primarily responsible for overseeing prediction markets, took a significant step toward consolidating its authority to oversee trading activities on prediction-market platforms.[1] The CFTC’s Division of Enforcement issued a “Prediction Markets Advisory” describing two enforcement actions brought by Kalshi, the world’s largest prediction market.[2] Both enforcement actions involved trades by Kalshi users who…
