SEC Enforcement Director: Closely Monitoring Insider Trading and Manipulation in Prediction Markets

Odaily — David Woodcock, Director of Enforcement at the U.S. SEC, said in an interview that the SEC is closely monitoring fraud and securities violations in prediction markets, with insider trading and market manipulation being the primary concerns, and that enforcement actions in this area are expected in the future. He noted that trading in prediction markets tied to key performance metrics or earnings data of public companies may fall within the SEC's regulatory scope. Currently, prediction markets such as Kalshi and Polymarket's U.S. operations are primarily regulated by the CFTC.