WASHINGTON, July 16, 2025 (GLOBE NEWSWIRE) -- PredictIt, the nation’s premier political prediction market, announces significant updates to its platform following a new agreement with the Commodity Futures Trading Commission (CFTC). These updates represent a major step forward for millions of Americans choosing to engage in the democratic process by making small-dollar forecasts on the platform.
The updated agreement removes the 5,000-trader limit on contracts, enabling an unlimited number of participants to join. As stated in the new No-Action Letter from the CFTC, "The removal of the trader cap is intended to foster broader public participation and enhance the utility of prediction markets as tools for academic research and public insight." Additionally, the position limit has been expanded from $850 to the federal individual campaign contribution limit, currently set at $3,500.
"This new cap strikes the right balance—it allows meaningful participation and more informative markets, while preventing billionaires from distorting the odds or overwhelming the collective voice of everyday Americans," explained David Mason, PredictIt General Counsel and former Federal Election Commission Chair.
The platform will now be governed by a non-profit entity, the Prediction Market Research Consortium, advised by academic experts from Princeton, Rutgers, and Wake Forest. This new governance structure recognizes the significant research contributions made by PredictIt and other prediction markets, further strengthening their value to the academic community. This shift reflects PredictIt’s commitment to advancing research and reinforcing its role as a valuable tool for academia, the media, and the public.
"PredictIt’s role in contributing meaningful data to researchers and media is a vital part of understanding political behavior and voter trends," said John Aristotle Phillips, co-creator of PredictIt.
This victory includes the legal admission, as determined by the Fifth Circuit Court of Appeals, that the prior chairman of the commission acted in an “arbitrary and capricious” manner in seeking to shut down PredictIt — and enables PredictIt to continue operating indefinitely under a transparent and fair regulatory framework.
“We are deeply grateful to Acting Chair Caroline Pham and the commission staff for recognizing the importance of PredictIt. Their diligence ensures the orderly expansion of prediction markets, allowing more Americans to participate in informed forecasting,” added Phillips.
PredictIt would also like to thank its dedicated community of over 400,000 users, including the thousands who sent letters of support to their representatives and regulators during the legal battle. These individuals wrote letters, signed petitions, and advocated for fair regulation. Similarly, prominent media organizations, including The New York Times, The Wall Street Journal, Financial Times, Drudge Report, and others, continued to reference PredictIt’s unique market data, underscoring its credibility and importance.
A special acknowledgment goes to the plaintiffs of the case Clarke v. CFTC, whose dedication was instrumental in this effort. Our gratitude extends as well to the legal and operational teams, led by Mike Edney and David Mason, for their steadfast leadership throughout this challenging time.
A PDF accompanying this announcement is available at http://ml.globenewswire.com/Resource/Download/0c3287c6-d016-4bac-b926-3b89cec18228
Contact: Brandi Travis +12707042462 brandi.travis@aristotle.com
