Polymarket Launches Parlay Result Trading; the SEC Seeks Public Input on Prediction Market Exchange-Traded Funds

1: Polymarket update: On Wednesday, the prediction market platform submitted self-certification documents to the U.S. CFTC and plans to launch combined-outcome parlay contracts. The service will be officially launched on May 21. Rules: A combined-outcome contract must have all underlying sub-contracts fully meet the settlement requirements in order to receive full settlement; if any one fails to meet the requirement, the contract is immediately set to zero. The platform also applied to keep certain commercially related filing materials confidential. This is a self-submitted filing for the launch and does not require special regulatory approval.

2: SEC regulatory developments: The SEC Chair said that, although the SEC does not directly regulate prediction markets, it has already started studying the rollout of prediction-market-related ETFs. The SEC recognizes the development momentum in the ETF industry, but has temporarily delayed the launch of innovative, event contract-type ETFs. It will publicly solicit public input and carefully assess the matter.

3: Industry regulatory disputes: After prediction markets move into the sports events domain, multiple parties have raised disagreements. Local regulators and the gambling operators believe it infringes on local gambling regulators’ and taxation authorities’ rights. The CFTC, meanwhile, argues that it has regulatory authority under the law. Related disputes may be decided by the U.S. Supreme Court, and Congress is also carrying out relevant regulatory reviews; no corresponding bill has been introduced yet.