Prediction markets have become a new arena for speculation in U.S. stocks, raising regulatory concerns and questions about investor protection and market surveillance. More than USD 220 million has been wagered on around 31,000 stock-related markets on Polymarket’s international platform, according to an analysis by Allium seen by Reuters.
Nearly 60 percent concerns individual stocks, primarily Nvidia, Alphabet, Apple and Tesla.
Under U.S. law, contracts linked to individual stocks are generally considered swaps regulated by the SEC, which are largely restricted to professional investors. The SEC and CFTC are reviewing how stock-related prediction markets should be regulated.
