The U.S. Commodity Futures Trading Commission on Thursday called for public comment ahead of a regulatory proposal ​it said would shape government oversight of the burgeoning market for ‌events contracts and prediction markets.

In a public notice, the agency drew attention to the need for protections against manipulation and the possibility of trading on margin as well ​as considerations for what kinds of contracts should be prohibited in ​the public interest, such as wagers on terrorism and military ⁠action.

Though the CFTC has considered regulating prediction markets for nearly two decades, ​they have exploded in popularity since the 2024 U.S. elections, when their real-time ​probabilities proved more accurate than polling in predicting Donald Trump’s victory.

The CFTC is battling for jurisdiction over such markets with state gaming regulators who claim they have oversight because ​the wagers are tantamount to traditional gambling.

Democrats on Capitol Hill and other ​critics have also expressed strong concerns, saying they are obvious targets for manipulation. The prediction ‌market ⁠Kalshi was sued earlier this month after refusing to pay out on wagers on the downfall of former Iranian Supreme Leader Ayatollah Ali Khamenei.