The rapid growth of prediction markets is raising fresh questions over whether the U.S. Securities and Exchange Commission (SEC) should share oversight with the Commodity Futures Trading Commission (CFTC), reported by CNBC.
The report said both agencies recently sought public comments on updating definitions for swaps and emerging financial products, signaling efforts to clarify regulatory boundaries.
Prediction market platforms, including Polymarket, confirmed engagement with regulators, while exchanges such as CBOE are pursuing SEC-regulated products.
Experts expect the CFTC to remain the primary regulator, with the SEC taking a supporting role where securities-related contracts are involved.
According to CNBC, clearer rules and closer cooperation between the agencies could reduce legal uncertainty, strengthen investor protections and encourage broader institutional participation in the growing prediction market industry.
Related Tweet:
The US regulator in charge of derivatives trading is rapidly proposing rules to establish its authority over prediction markets and digital assets, charging ahead even as four out of its five commissioner seats remain vacant. https://t.co/Suvw58w2Lz
— Bloomberg Law (@BLaw) July 15, 2026
Also Read:
TIPP Staff
