Polymarket's expansion into US stocks raises regulatory concerns

Apple: Apple is a major technology company whose stock performance and product launches frequently attract trader interest in financial markets. Its shares are among the most popular underlying assets in equity-linked prediction markets offered by platforms like Polymarket. Tesla: Tesla is an electric vehicle and clean energy company whose stock moves, deliveries, and other metrics are actively traded in prediction markets. The company's high volatility has made it a focal point for speculators using these alternative venues. Kalshi: Kalshi is a prediction market platform focused on event contracts tied to real-world outcomes such as economic indicators and corporate performance metrics. It offers markets on stock indexes and company KPIs but does not currently provide wagers on individual stocks. The platform emphasizes collaboration with regulators and monitoring for misconduct in its operations. Nvidia: Nvidia is a leading semiconductor and technology firm whose stock is among the most wagered-upon assets in prediction markets on individual company performance. Its prominence in these markets reflects broader trader focus on major tech equities. Alphabet: Alphabet is the parent company of Google and a major technology conglomerate whose stock serves as a popular underlying for equity prediction markets. It ranks among the top individual stocks attracting activity on platforms expanding into traditional Wall Street areas. Polymarket: Polymarket is a prediction market platform that allows users to bet on a wide range of events including elections, sports, and corporate outcomes. It has expanded into equity-linked markets on individual US stocks and related events, positioning it as a key player in this emerging space outside traditional exchanges. The platform maintains an offshore structure for international users while operating a separate CFTC-regulated US exchange for certain products. Adam Schiff: Adam Schiff is a US Senator from California and a Democrat who has expressed concerns about prediction markets potentially sidestepping securities laws. He has called for Congress to prevent the industry from avoiding traditional regulatory frameworks. James Angel: James Angel is a finance professor at Georgetown University specializing in market microstructure and regulation. He has highlighted risks associated with offshore prediction market structures that limit visibility for US regulators. Yesha Yadav: Yesha Yadav is the associate dean at Vanderbilt University Law School and an expert in market structure and financial regulation. She has commented on the rapid growth of equity-linked prediction markets as a new frontier requiring urgent regulatory attention. Ben Schiffrin: Ben Schiffrin is a former SEC official who now directs securities policy at the nonprofit Better Markets. He has raised concerns about potential insider trading in prediction market contracts tied to company KPIs and argued for SEC oversight. Market Expansion: Prediction markets have expanded over the past year to include tens of thousands of markets on stock moves, company data, and corporate events beyond their original focus on elections and sports. Regulatory Oversight: US regulators including the CFTC and SEC are jointly reviewing how swap and security-based swap definitions apply to novel event contracts offered by prediction markets. Institutional Interest: Prediction market platforms are courting institutional investors by marketing event contracts as tools to hedge traditional economic and market risks with around-the-clock trading capabilities.