The CFTC's Division of Market Oversight issued a key advisory in mid-March 2026, offering Designated Contract Markets (DCMs) detailed guidance on self-certifying sports event contracts under Core Principle 3, which prohibits listings contrary to the public interest. Emphasizing manipulation risks in player-specific or narrow sports outcomes, the advisory urges pre-listing consultations with leagues like MLB—highlighted by a landmark CFTC-MLB MOU signed March 19—and robust surveillance. This follows the agency's February withdrawal of prior event contract rules and an Advance Notice of Proposed Rulemaking seeking input on prediction markets. While Kalshi and others have listed sports contracts, major DCMs like CME have recently self-certified elections but remain cautious on sports amid state gambling turf battles and bipartisan bills to defer to states. Traders watch for self-certifications by June 30 amid evolving federal clarity.