Foresight News reported that the U.S. Commodity Futures Trading Commission (CFTC) issued a no-action letter to Polymarket, PredictIt, Gemini, and the operators of LedgerX/MIAX, stating that these companies would not need to comply with certain recordkeeping requirements if they meet other specific conditions, and that they may be able to clear contracts through third-party clearing members. The CFTC indicated that the no-action letter means that the regulatory agency will not take any enforcement action regarding these companies' compliance with "certain recordkeeping requirements related to swap transactions, as well as the failure to report data related to binary options trades to swap data repositories."
According to the non-action letter, the issuer must ensure that its contracts are always fully collateralized; clear contracts only through its designated platform; publish all relevant data on its platform after the execution of the contract; and comply with other specific swap transaction record requirements.
