CFTC Eases Rules for Integrating Prediction Markets into Apps
The Commodity Futures Trading Commission (CFTC) has issued a no-action letter that allows qualifying software providers to offer prediction markets without registering as brokers. This relief expands on the model used by Phantom, which was granted similar permissions in March 2026. The new policy lets passive software developers provide access to regulated derivatives and collect revenue from trading or transaction fees, provided they do not hold customer assets or control trade execution. The move is seen as significant for companies like Robinhood (NASDAQ:HOOD), which reported $156 million in event contract revenue during the second quarter—surpassing its earnings from equities and crypto. The CFTC relief could increase competition by enabling more apps to integrate prediction markets, though they still rely on regulated entities for customer funds and trading infrastructure. Robinhood's Robinhood Derivatives unit already handles derivatives trading and is supported by Rothera, a joint venture with Susquehanna International Group. Coinbase (NASDAQ:COIN) also has the necessary brokerage structure in place through its subsidiary to support U.S.-based prediction markets.
Tickers: $HOOD
Topics: CFTC regulation derivatives trading prediction markets software developers