Former SEC Chair Gary Gensler has publicly disputed the Commodity Futures Trading Commission's assertion that it holds regulatory authority over prediction markets, particularly those involving sports betting. Gensler's pushback adds a notable voice to an ongoing jurisdictional debate that has intensified as prediction market platforms like Polymarket gain mainstream traction. The question of which federal regulator — the SEC or CFTC — oversees these instruments has significant implications for how platforms operate and what compliance obligations they face. Gensler, who stepped down from the SEC in early 2025, has historically taken an expansive view of securities law but appears to draw a line at the CFTC extending its remit into sports-based prediction contracts. The dispute reflects broader regulatory uncertainty surrounding the fast-growing prediction market sector.
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