U.S. SEC says prediction market oversight falls under CFTC in court filing

The U.S. SEC indicated that oversight of prediction markets falls under the Commodity Futures Trading Commission within the federal financial regulatory framework. According to industry sources on Nov. 12, the Capital Markets Association of America, a capital markets group centered on financial institutions, sued the CFTC, arguing the agency allowed single-stock perpetual futures to bypass securities rules by authorizing them. In an amicus brief filed with the court, the SEC rejected the plaintiff’s claim that a regulatory gap or breakdown exists between the agencies and defended the legitimacy of the current framework. The SEC also pushed back on CMAA’s description of an out-of-control CFTC and an SEC that had abandoned its role, saying the characterization was inaccurate.