SEC begins review of equity-linked prediction market regulations

The Securities and Exchange Commission began reviewing regulations concerning equity-linked prediction markets on September 28, 2026. These markets have expanded beyond sports and elections to offer tens of thousands of markets on stock moves and corporate events for traders. These venues allow speculation on US companies outside many of the protections governing regulated exchanges.

The growth of these prediction markets raises concerns about investor protection and market oversight. Legal experts warn that if the products continue to expand quickly, they could eventually influence trading in the underlying shares and undermine regulatory ability to police the market.