CFTC committee members warn of forecasting increased market risks and call for strengthening regulation

According to Cointelegraph, CFTC Commissioner Kristin N. Johnson warned that forecasting increased risk to retail investors, lack of regulation and clarity is the main problem. In her farewell speech at the Brookings Institution, she said that market participants provide leverage forecast market contracts to retail investors, with unclear regulatory boundaries. She expressed disappointment at the CFTC's failure to implement the rules for political event contracts, which allow users to bet on election or sporting events results, expanding rapidly. She criticized the derivatives market for the “rental or buy my license” trend, saying some companies have turned to self-certification forecasting market contracts after obtaining traditional product licenses. She emphasized the importance of consumer protection and market stability, and pointed out that there are often rules to follow in governance and risk management failures. The CFTC sends inaction letters to Polymarket-related entities allowing them to operate the event market in the United States.