The U.S. Commodity Futures Trading Commission is seeking public comment on the appropriate regulatory treatment of financial agreements offered by so-called prediction markets.

The CFTC says that during the past several years it has received numerous requests for guidance involving the trading of event contracts. These contracts typically involve financial agreements that are linked to events, such as the results of presidential elections, world population levels, or economic measures.

“Event markets are rapidly evolving, and growing, presenting a host of difficult policy and legal questions including: what public purpose is served in the oversight of these markets and what differentiates these markets from pure gambling outside the CFTC’s jurisdiction?” said CFTC acting chairman Walt Lukken. “The CFTC is evaluating how these markets should be regulated with the proper protections in place and I encourage members of the public to provide their views.”

In response to requests for guidance, and to promote regulatory certainty, the CFTC has commenced a comprehensive review of the Commodity Exchange Act’s applicability to event contracts and markets. It is also issuing a concept release to solicit the expertise and opinions of all interested parties, including CFTC registrants, legal practitioners, economists, state and federal regulatory authorities, academics, and event market participants. Comments will be accepted for 60 days.