ProphetX Urges CFTC to Close Regulatory Gap Impeding Fintech Innovation and Consumer Access

NEW YORK, July 10, 2026 /PRNewswire/ -- ProphetX, America's first federally regulated sports-native prediction market, submitted a comment letter to the U.S. Commodity Futures Trading Commission (CFTC) in response to the Commission's Request for Information on Identifying Regulations to Facilitate Innovation and Competition for Fintech Firms.

"We applaud the Commission for seeking input on how its regulatory framework can better support responsible fintech innovation," said ProphetX CEO and Co-Founder Dean Sisun. "Our comment letter builds on the Commission's existing guidance by recommending a durable Section 4(c) framework that provides regulatory certainty for technology providers while preserving the customer protections at the core of the Commodity Exchange Act."

"As sports event contracts become increasingly accessible through technology platforms, regulatory certainty is essential," Sisun added. "A complementary Section 4(c) framework for eligible sports event contracts and qualifying technology service providers would support responsible innovation, encourage investment in compliant market infrastructure, and give effect to the Commodity Exchange Act's express federal preemption of state gaming laws."

ProphetX's letter focuses on a specific gap in the Commission's current regulatory framework: the treatment of technology service vendors (TSVs) that provide passive front-end software enabling customers to access CFTC-regulated sports event contracts. Today, technology providers seeking to facilitate customer access must generally rely on individualized, staff-issued no-action relief to address potential introducing broker (IB) registration questions under Section 4d(g) of the Commodity Exchange Act. ProphetX argues that while this approach has provided an important foundation, it creates unnecessary regulatory uncertainty, discourages partnerships between regulated exchanges and fintech firms, and is not well suited to the growing number of technology platforms through which consumers are expected to access regulated prediction markets.

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:
ProphetX Newsroom
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SOURCE ProphetX