CFTC Submits two rules to the White House to define the swap status of event contracts
BIBIBI
AT A GLANCE
CFTC has submitted two proposals to the White House,OIRA respectively concerning whether event contracts and casino-style gaming products constitute swaps.
Article
CFTC Submits two rules to the White House to define the swap status of event contracts
PANews September 30 news, according to The Block, the United States CFTC has submitted two regulatory proposals to the White House Office of Information and Regulatory Affairs (OIRA): the first is a proposed rule that would explicitly include “event contracts” in the definition of “swap,” which will subsequently enter a public comment period; the second is an interim final rule that would exclude “casino-style gaming products” from the definition of “swap,” taking effect upon administrative approval. This is viewed as a response to rulings by the Sixth and Ninth Circuit Courts of Appeals; the Supreme Court has accepted three appeals related to the definition of swaps.
PANews, citing The Block, reported that the United States CFTC has submitted two regulatory proposals to the White House Office of Information and Regulatory Affairs (OIRA).
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The first is a proposed rule that would explicitly include “event contracts” in the definition of “swap,” which will subsequently enter a public comment period.
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The second is an interim final rule that would exclude “casino-style gaming products” from the definition of “swap,” taking effect upon administrative approval.
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The original text states that this is viewed as a response to rulings by the Sixth and Ninth Circuit Courts of Appeals.
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The original text states that the Supreme Court has accepted three appeals related to the definition of swaps.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
The two proposals address how different products are classified under the definition of “swap”: event contracts are proposed for inclusion, while casino-style gaming products are proposed for exclusion. The first still requires a public comment period, while the second must await administrative approval.
Why it matters to readers
The relevant rules will affect the classification of event contracts and casino-style gaming products under the definition of “swap”; at the same time, courts are handling cases related to this definition.
Beginners should follow whether the rules are approved, whether the text changes after the public comment period, and subsequent developments in the Supreme Court appeals. For now, the proposals should not be treated as final rules that are already fully effective.
Risks and unknowns
The material is PANews’s retelling of The Block’s report and does not include CFTC or OIRA the original rule documents.
The full texts, specific scope of application, and administrative review results of the two proposals cannot be confirmed from the original text.
The proposed rule is still pending public comment, and the interim final rule is still pending administrative approval.
The names, contents, and subsequent outcomes of the three appeals accepted by the Supreme Court were not described in the original text.
The statement that it “is viewed as responding to the court’s ruling” is an assessment in the report; the original text provides no official statement to verify it.
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Related concepts
Event contracts
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