The much-anticipated joint roundtable between the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) on regulatory harmonisation gave the appearance of addressing cutting-edge market innovation. Yet, despite the participation of Kalshi and Polymarket’s founders—two of the most visible players in prediction markets—the event was notable for what it left unsaid: prediction markets themselves.
Prediction markets left out of official statement
The regulators’ official post-event statement did not mention prediction markets, sports event contracts, or event-based trading products at all. Instead, the remarks focused on broad themes such as blockchain, artificial intelligence, decentralised finance, and especially digital assets, which SEC Chair Paul Atkins described as the agencies’ “job No. 1.”
We're 54 minutes into this, and I'm still not sure why Kalshi and Polymarket were invited to this panel. (Other than to legitimize event contracts as financial instruments, and to foreshadow the jurisdictional fight over security-based event contracts.)
— Andrew Kim (@akhoya87) September 29, 2025
The omission comes at a time when prediction markets have been at the centre of heated legal battles and policy debates in the US. Kalshi is currently regulated by the CFTC as a designated contract market, while Polymarket has faced prior enforcement scrutiny. While their inclusion in the panel was seen as a symbolic step towards legitimacy, the absence of the term “prediction markets” in the SEC-CFTC joint framing has left the markets as they were, with no certain regulatory clarity.
Symbolism over substance
The panel featuring Kalshi co-founder Tarek Mansour and Polymarket founder Shayne Coplan generated attention, but the discussion stopped short of tackling the legal grey zones around sports event contracts. Instead, regulators and market leaders kept the focus on “innovation exemptions,” duplication of oversight, and how to encourage competition without driving innovators offshore.
The SEC-CFTC roundtable highlighted the agencies’ desire to avoid repeating past regulatory turf wars. Digital assets, perpetual futures, and 24/7 trading were singled out as areas ripe for regulatory coordination between the agencies. SEC and CFTC leaders stressed that the fragmented US system—with the SEC overseeing securities and the CFTC policing derivatives—needs greater alignment to prevent arbitrage between rulebooks.
Meanwhile, Mansour and Coplan both framed their very presence at the roundtable as progress. Coplan joked about his prior run-ins with regulators, while Mansour stressed the need for a level playing field. “It is really inspiring to see how far we’ve come in having regulators willing to have us here,” Mansour said.
Industry concerns persist
CME Group Chief Executive Officer (CEO) Terrence Duffy came the closest to linking prediction markets with broader concerns, warning that innovation exemptions risked creating double standards. While his comments resonated with industry participants, the lack of explicit focus on event contracts underscored regulators’ reluctance to touch the most controversial aspects of prediction markets.
Today, we hosted a joint roundtable with @CFTC on regulatory harmonization. I look forward to working with my counterparts across the Administration to ensure the SEC and CFTC operate side by side so that American innovation and investment can thrive. https://t.co/Z3L7VO2FaV pic.twitter.com/vPaQmwlA5i
— Paul Atkins (@SECPaulSAtkins) September 29, 2025
By contrast, digital assets received repeated mentions throughout the session, with agency leaders framing crypto oversight as the central challenge in harmonising US market regulation. Calling for a unified approach to regulation, SEC Chairman Atkins said the move can ensure the next wave of financial technologies are developed in the US. A pending congressional bill to divvy up digital asset responsibilities between the SEC and CFTC was also flagged as a potential turning point.
Meanwhile, former CFTC officials and market analysts have warned that leaving prediction markets out of official agendas risks prolonging uncertainty. Without clear guidance, platforms may either seek offshore solutions or test the limits of existing rules.
Event contracts and prediction markets were supposed to be at the top of the agenda for the roundtable. This comes amid growing concerns over fragmented oversight and the rapid evolution of derivatives markets. In a joint statement issued 5 September, the agencies warned that “novel products” are clouded by legal uncertainty and inconsistent regulation. The statement, while not explicitly naming companies, appeared to reference emerging markets such as cryptocurrency trading and event contracts offered by operators like Kalshi, Crypto.com, and Robinhood, including those available in US states that have not legalised sports betting.
Candidates for CFTC chair
Additionally, The CFTC is eyeing candidates to lead the CFTC as Brian Quintenz’ nomination was stalled. Reportedly tossing his hat in the ring is Josh Sterling, a lawyer representing popular prediction market platform Kalshi. Currently, the CFTC is being led by a sole commissioner, Acting Chair Caroline Pham, a Trump-appointed Republican. However, Pham has stated she intends to step down once her permanent successor is confirmed.
The leadership crisis comes at a time when the CFTC’s responsibilities could be drastically expanded. The Digital Asset Market Clarity Act, recently passed in the House with broad bipartisan support, proposes giving the CFTC authority to regulate non-security digital assets like Bitcoin and Ether. However, the Senate version of the bill remains in committee.
The Digital Asset Market Clarity Act 2025 establishes a clear regulatory framework for digital commodities, primarily overseen by the Commodity Futures Trading Commission. It defines blockchain maturity, exempts qualifying assets from SEC registration, and enforces anti-money laundering compliance.
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