US Securities and Exchange Commission chair Paul Atkins told lawmakers the agency may assert jurisdiction over parts of the rapidly expanding prediction market sector.
Testifying before the Senate Banking Committee, Atkins said some prediction market contracts could qualify as securities depending on how they are structured and described.
“Prediction markets are exactly one thing where there’s overlapping jurisdiction potentially,”
Atkins said, adding that:
“That is a huge issue we’re focused on.”
Atkins added that while oversight currently sits largely with the Commodity Futures Trading Commission, the SEC believes it already has sufficient authority to intervene without new legislation.
“I think we have enough authority,”
Atkins replied, adding:
“A security is a security regardless of how it is, and some of the nuance with prediction markets and the products depends on wording and what exactly is being done.”
The prediction market industry has grown more than fourfold over the past year into a $63.5 billion market, with leading platforms Kalshi and Polymarket reaching valuations of $11 billion and $9 billion respectively.