News: PredictIt Wins Approval To Be Full Prediction Market Under CFTC
The longtime platform for political betting had been operating on a limited basis under a no-action letter, but now joins the likes of Kalshi as a fully regulated exchange and prediction market.
The Commodity Futures Trading Commission approved the parent company of PredictIt as a designated contract market and a derivatives clearing organization on Friday, giving it a path toward becoming a full prediction market in the US.
The approval was given to the operator of PredictIt, Aristotle, under the name “Aristotle Exchange.” It gained registered status earlier on Friday, per the CFTC website.
Aristotle put out this press release:
Aristotle, the company that services PredictIt, today announced that the Commodity Futures Trading Commission (CFTC) has approved its applications to operate as both a Designated Contract Market (DCM) and a Derivatives Clearing Organization (DCO).
With these approvals, Aristotle will launch a new exchange designed to provide U.S. traders with more diverse markets, deeper liquidity, and broader participation.
“We thank the CFTC staff and Acting Chair Pham for their diligence in reviewing and approving our applications,” said John Aristotle Phillips, CEO of Aristotle. “With more than a decade of experience operating PredictIt, we’re excited to bring that knowledge and community to a fully regulated marketplace.”
The new exchange is expected to open for trading in October 2025, offering expanded opportunities for traders and a trusted clearing framework under Aristotle’s DCO.
“Prediction markets help people understand the future, and this approval allows us to deliver the most robust and transparent version of that vision yet,” added Phillips.
PredictIt had been fighting the CFTC just to operate at all in the US under a longtime no-action letter, using that to offer election betting for years before the CFTC pulled its approval. But that litigation was settled in July, and PredictIt got a green light from the CFTC to operate with new guidelines under a new no-action letter.
Now, the leash appears to be off for PredictIt. It would be free to compete toe to toe with the existing prediction markets industry, against the likes of Kalshi, Crypto.com and soon Polymarket.
