SEC chair Paul Atkins said Thursday that the Wall Street regulator could soon involve itself in the regulation of prediction markets—a move that could have significant implications for the exploding sector.
During testimony before the Senate Banking Committee, Atkins identified prediction markets as an industry that should potentially be overseen by both the SEC and its more hands-off sister agency, the commodities-focused CFTC. Up to now, the CFTC has been considered the default regulator for prediction markets.
“Prediction markets are exactly one thing where there’s overlapping jurisdiction potentially,” Atkins said, in response to a question from Sen. Dave McCormick (R-PA). “That is a huge issue we’re focused on.”
“It’s mostly, at least currently, on the CFTC side,” the SEC chair continued. “But we need to be harmonized in the way we’re addressing these markets.”
When McCormick asked whether the SEC would need legislation passed by Congress to involve itself in regulating prediction markets, the agency chief indicated the agency is ready to move now.
“I think we have enough authority,” Atkins replied. “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.”
It is as of yet unclear what exactly Atkins meant by the comment. Decrypt reached out to the SEC for clarification but did not immediately receive a response.
