The CFTC has opened a rulemaking process for U.S. prediction markets, seeking public comment on event contracts, manipulation risks and insider trading concerns.
Nasdaq has filed with the SEC to list binary, prediction-style options tied to the Nasdaq 100 index, marking a major step toward regulated event-based trading.
Prediction markets have diverted more than $500 million in potential sports betting tax revenue from states, according to the American Gaming Association.
The CFTC-regulated prediction market said it penalized a MrBeast employee and a former political candidate for trading on non-public information.