The U.S. Commodity Futures Trading Commission (CFTC) Division of Market Oversight has issued formal compliance guidance, warning that event contracts in prediction markets based on whether a specific individual will 'mention a certain word' or 'attend a certain event' carry a high risk of market manipulation and insider trading. The CFTC clarified that designated contract markets may only list such contracts under 'extremely limited circumstances,' otherwise they would violate the Commodity Exchange Act (CEA) and related regulations. The guidance requires platforms to assess whether the decision-makers of such outcomes are bound by legally enforceable confidentiality, fiduciary, or organizational compliance obligations, in order to effectively curb deliberate statements made to influence settlement outcomes. Platforms are also required to establish preemptive trading risk controls and anti-manipulation mechanisms. Previously, the CFTC has filed lawsuits over several alleged insider trading cases, including one involving a former White House teleprompter operator accused of profiting on Kalshi by exploiting privileged access to presidential speech drafts. (TheBlock) https://www.(wublock123.com)/news/cftc-compliance-guidance-restricts-event-linked-prediction-market-contracts-68840