SEC Chair Atkins calls prediction markets a “huge issue” amid growing legal spotlight
SEC Chair Paul Atkins identified prediction markets as a "huge issue" requiring regulatory focus due to overlapping jurisdiction.Summary
Securities and Exchange Commission (SEC) Chair Paul Atkins informed lawmakers that prediction markets are a significant regulatory concern, noting overlapping jurisdiction with the Commodity Futures Trading Commission (CFTC), whose Chair Michael Selig shares this focus. Prediction markets like Kalshi and Polymarket have seen rapid growth, leading to regulatory friction, as operators argue they are CFTC-regulated event contracts, while some states claim violations of local gaming laws. Atkins stated that while the markets are mostly under CFTC purview, the SEC has authority if a product qualifies as a security, and both agencies are collaborating weekly through "Project Crypto." CFTC Chair Selig emphasized the need to develop proper rules to ensure these markets flourish domestically rather than moving offshore. The discussion also touched upon the need for bipartisan leadership at both agencies, with Atkins supporting filling vacant commissioner seats.
(Source：The Block)