The US Commodity Futures Trading Commission issued a second advisory this year on Friday instructing prediction-market operators to cease submitting overly broad template-style self-certifications for event contracts. The agency stated that platforms under its jurisdiction may still certify contracts as compliant with the Commodity Exchange Act and its rules without prior commission approval. However each certification must supply the full terms and conditions of every proposed variation along with a concise explanation and analysis covering the product’s terms, the underlying commodity and compliance with applicable requirements.

A similar caution against generalized submissions was released on March 12. The latest guidance arrives days before the Monday deadline for comments on proposed amendments that would establish a three-step framework for determining whether certain event contracts are contrary to the public interest. That framework would evaluate contracts linked to activities such as terrorism, assassination or gaming. Adoption of the amendments would alter key aspects of the regulatory approach to prediction markets.