Prediction market platforms may soon come under the scrutiny of a second federal agency.
The Commodity Futures Trading Commission (CFTC) is currently the regulator for sites like Kalshi that offer sports outcome contracts. The CFTC announced in a joint letter with the U.S. Securities and Exchange Commission (SEC), a bipartisan body that protects investors and enforces securities laws, that they have an interest in clarifying the controversial markets.
The statement, released Friday, came from SEC chair Paul Atkins and acting CFTC chair Carolina D. Pham.
“Prediction markets, while they have existed around the world for decades, are undergoing rapid growth with growing demand from both market operators and the public,” the two federal agencies wrote in their letter.
