The U.S. Commodity Futures Trading Commission (CFTC) has issued guidance, expressing concern over an increase in "procedurally or substantively deficient" filings from prediction market firms for incentive programs. The regulator warned that these programs, which reward high-volume traders or guarantee profits for market makers, could encourage manipulative practices such as wash-trading, pre-arranged trading, or other fraudulent activities. The CFTC stated that these faulty filings hinder its ability to assess compliance with existing rules.