PredictIt, a political prediction market, has received regulatory clearance to function as an officially licensed derivatives exchange and clearinghouse.

The Commodity Futures Trading Commission (CFTC) has granted licenses to Aristotle, the entity managing PredictIt, to operate both an exchange and a clearinghouse—key elements for executing transactions in prediction markets, as reported by Bloomberg. These applications were under scrutiny since late 2021.

This development coincides with a rise in CFTC approvals for emerging prediction market platforms, enabling users to bet on various outcomes, ranging from political elections to interest rate fluctuations and sports events.

PredictIt has been functioning for over a decade under a CFTC “no-action” letter but faced regulatory obstacles when the commission revoked the letter in 2022. The CFTC claimed that PredictIt had not adhered to the stipulations of the agreement, which primarily limited trading to academic purposes and minor amounts. This issue resulted in a protracted legal battle that PredictIt ultimately won in July 2025.

In the wake of the court’s decision, the CFTC issued a new no-action letter granting PredictIt permission to broaden its political trading. The freshly issued exchange and clearinghouse licenses position PredictIt alongside other regulated derivatives platforms like Kalshi, Polymarket, and Crypto.com.

Aristotle announced that the exchange is set to launch in October. “Prediction markets aid individuals in forecasting the future, and this approval empowers us to offer the most comprehensive and transparent version of that concept yet,” stated John Aristotle Phillips, Chief Executive Officer of Aristotle.