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

October 30 — According to Bloomberg, David Woodcock, Director of the U.S. SEC's Division of Enforcement, said in an interview that the SEC is closely monitoring fraud and securities violations in prediction markets, with insider trading and market manipulation as its main concerns, and expects to take enforcement action in this area in the future. He noted that prediction market trading tied to key performance metrics or financial reporting data of public companies may fall within the SEC's regulatory scope. Currently, prediction markets such as Kalshi and Polymarket's U.S. business are primarily regulated by the CFTC.