The CFTC and SEC are strengthening their collaboration on prediction market regulation, potentially expanding enforcement scope.

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Odaily Planet Daily News reports that FOX journalist Charles Gasparino revealed that the U.S. Commodity Futures Trading Commission (CFTC) and the U.S. Securities and Exchange Commission (SEC) are currently collaborating more closely on defining the regulatory boundaries of prediction markets and have maintained a unified stance in recent investigations into abnormal trading related to the Iran conflict.

Charles Gasparino stated that although it is generally believed that prediction markets are primarily regulated by the CFTC, when relevant prediction contracts may be legally classified as “securities,” the SEC will also become deeply involved. He also disclosed that, in addition to the cases already made public, regulatory agencies may undertake more enforcement actions against prediction markets in the future.

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