Prediction Markets Pose 'Significant Challenges', Says SEC Chair

During the Senate Banking Committee hearing on February 13, SEC Chairman Paul Atkins described the regulation of prediction markets as a 'significant challenge' and revealed that he is working in conjunction with CFTC Chairman Michael Selig to address these issues.

Chairman Atkins noted that 'prediction markets are one area where jurisdictional overlaps could occur,' explaining that while the CFTC will primarily lead the regulatory efforts, both agencies will collaborate closely. The two chairmen are currently holding weekly discussions.

Prediction markets like Kalshi and Polymarket have seen rapid expansion following the 2024 election cycle. Traditionally, these markets have been strictly regulated by the CFTC...