CFTC Makes Regulations on Swap Definitions Available for Public Comment

The Commodity Futures Trading Commission has posted its latest regulations concerning the definition of "swaps" under the Commodity Exchange Act. The rules are available for public comment until Nov. 18, 2026.

In their current form, these regulations exclude "casino-style gambling products" from swaps classification and explicitly designate event contracts as swaps. As decisions are pending at the Supreme Court of the United States, these regulations could factor into those proceedings.

Regulations on swaps available for comment

Commodity Futures Trading Commission (CFTC) staff posted CFTC-2026-2213-0001 and CFTC-2026-2214-0001 to the federal register on Oct. 19, 2026. Individuals and organizations interested in commenting on the rules can submit their thoughts online.

2214-01, "Further Definition of 'Swap' to Exclude Casino-Style Gambling Products" is an interim final rule. That means it takes effect after the comment period ends.

2213-01, "Further Definition of 'Swap'—Inclusions," is a proposed rule. It will undergo further review before potentially becoming final.

Both regulations concern how CFTC Chair Michael Selig, the only current member of the "commission," will adjudicate swaps moving forward.

Rules take aim at criticisms of swaps regulation

Both 2213-01 and 2214-01 are responses from Selig to court rulings that have interpreted the Commodity Exchange Act (CEA) in ways that Selig has taken issue with. The text of 2214-01, for example, directly cites opinions from the US Sixth and Ninth circuit courts of appeal.

The rulings in question have stated that sports event contracts likely don't fit the definition of a swap under the CEA. The opinions also deem such markets as gambling products.

Selig's rules respond by trying to create a delineation between event contract trading and gambling. A higher authority is likely to have the final say on the subject, though.

SCOTUS opinion could redefine regulations

Many parties have called on the Supreme Court of the United States (SCOTUS) to take up an appeal and rule on whether event contract trading, especially related to sporting events, fits under the exclusion jurisdiction of the CFTC. The new regulations do not carry the weight of law but represent Selig's attempts to craft a narrative for the justices.

There are three petitions before SCOTUS at this time. Those petitions represent two separate cases, but the main legal questions in either are essentially identical. The primary issue is whether sports event contracts are swaps under the CEA.

If it hears an appeal, SCOTUS will also face arguments over to what extent, if any, federal securities law like the CEA preempt state regulation of the markets. SCOTUS' interpretation of the CEA in terms of what is and isn't a swap will have a significant impact on that question.

A favorable ruling for state governments from SCOTUS could compel Selig to rewrite these regulations. For example, Selig may have to specify that event contracts based on sporting events are an exception to the "event contracts are swaps" rule.

Additionally, Selig may need to adjust the definition of a "casino-style gambling product" to include sports contracts. A favorable ruling for the prediction market exchange operators would reinforce Selig's application of the CEA, though.

At this point, SCOTUS has not indicated that it will hear either case. The CFTC rules that prepare for that possibility are moving forward in the public comment stage, though.