Submits comment letter to CFTC Innovation Advisory Committee on market structure and competitive price formation
NEW YORK, Aug. 20, 2026 /PRNewswire/ -- ProphetX, America's first federally regulated sports-native prediction market, today announced that Chief Executive Officer and Co-Founder Dean Sisun submitted a comment letter to the U.S. Commodity Futures Trading Commission (CFTC) in connection with the August 20 meeting of the Innovation Advisory Committee.
"ProphetX applauds Chairman Selig and the CFTC for prioritizing pragmatic regulatory innovation across the sports prediction market landscape and for convening the Innovation Advisory Committee," said ProphetX CEO and Co-Founder Dean Sisun. "A two-sided, peer-to-peer exchange model operating under durable federal oversight is not simply another way to package the state sportsbook model. It is a structurally distinct, more consumer-favorable way to bring regulated sports event contracts into the financial system."
ProphetX operates as a peer-to-peer exchange where users trade directly against one another. The exchange does not hold a directional position in any outcome, a structure distinct from the state sportsbook model where the operator sets the price and stands as the counterparty.
In the letter, Sisun offered three key recommendations for the Commission's developing market structure for prediction markets:
- Preserve neutral, competitive price formation. Where sports event contracts are listed and cleared as derivatives on a DCM, the Commission's market-structure rules should preserve the competitive price formation and venue neutrality an exchange can deliver, rather than allow exchange form to reproduce the seller-counterparty economics of the state sportsbook model.
- Ensure affiliated liquidity supplements rather than displaces independent participants. The Commission's recent Conflicts and Affiliations proposal distinguishes bona fide market making from directional proprietary trading. Rules should preserve room for customers, market makers, and other independent participants to compete on both sides of the market while the venue remains neutral.
- Use Section 4(c) to provide categorical regulatory certainty. A conditions-based framework under Section 4(c) of the Commodity Exchange Act could set objective standards for eligible sports event contracts, including clear settlement criteria, surveillance, information controls, and market-integrity protections, and provide exchanges maximum ex ante certainty without individualized review under Regulation 40.11.
About ProphetX:
Founded in 2018, ProphetX is America's first sports-native prediction market. The company is a regulated U.S. exchange for event-driven contracts, built on a sports-focused foundation and designed to expand across a broad range of event markets. Its mission is to create the world's most trusted and innovative marketplace where anyone can participate in event outcomes.
Media Contact:
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SOURCE ProphetX
