June 10 (Reuters) - The U.S. Commodity Futures Trading Commission will propose new rules on how it will govern prediction markets, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.
Prediction markets, which can allow traders to bet on "yes or no" outcomes on specific events, have grown in both popularity and controversy.
They have drawn increasing scrutiny as well-timed trades ahead of U.S. President Donald Trump's major policy surprises have potentially led to
millions of dollars in profits for unknown traders.
The WSJ report said the rules could cover some sports-related trading, including bets on player injuries and so-called "first-pitch" gambling, while bets on war, terrorism or assassinations would likely be barred as not in the public interest.
Reuters could not immediately verify the report. The CFTC did not immediately respond to Reuters' request for comment.
The agency’s proposal doesn't outright ban trading on any specific types of so-called event contracts, but rather outlines factors that regulators will use to review certain types of contracts on a case-by-case basis, the Journal added.
U.S. President Donald Trump said last month in a post on Truth Social that it was critically important that the Commodity Futures Trading Commission maintain exclusive authority over prediction markets.
(Reporting by Abu Sultan in Bengaluru, Editing by Alexandra Hudson)
