The CFTC's March 12, 2026, staff advisory marks a pivotal shift, clarifying that designated contract markets (DCMs) may self-certify sports event contracts under existing rules like Regulation 40.2, provided they address manipulation risks through robust surveillance, pre-listing engagement with sports leagues, and detailed compliance analyses. This follows the agency's February withdrawal of prior restrictive proposals and an Advance Notice of Proposed Rulemaking seeking comments by April 30 on prediction market oversight. No DCMs have yet self-certified such contracts amid ongoing debates over gambling distinctions, but heightened scrutiny and recent MOUs like CFTC-MLB signal growing feasibility. Traders eye June 30 as the key deadline, with exchanges like CME and Railbird positioned to lead based on prior event contract activity.