SEC, CFTC Align on Prediction Markets Oversight, Expanding Crypto Regulatory Risk

U.S. derivatives and securities regulators are tightening their coordination on how to police fast-growing ‘prediction markets', a shift that could broaden enforcement risk for platforms offering event-based contracts tied to geopolitics and other headline-driven outcomes. The development comes as crypto-native trading products continue to blur the lines between commodities, securities, and novel financial instruments.