Citadel Called on SEC to Oversee Part of Prediction Markets

cryptonews.ruPublished on 2026-09-11Last updated on 2026-09-11

Abstract

Citadel Securities has called on the U.S. Securities and Exchange Commission (SEC) to regulate certain types of prediction markets. The firm argues that contracts allowing bets on the performance outcomes of public companies should be overseen by the SEC, not launched via a simpler CFTC process. Citadel warns that these instruments, where payouts are tied to companies meeting specific targets, pose risks of insider trading and should not bypass securities regulations.

Citadel Securities stated that bets on the results of public companies on prediction markets should fall under SEC supervision. The issue pertains to contracts whose payouts depend on a company achieving specific metrics. The market maker pointed out the risk of insider trading and opposed the launch of such instruments via CFTC's simplified procedures that bypass securities requirements.

Related Questions

QWhat has Citadel Securities called for regarding prediction markets related to public companies?

ACitadel Securities has called for the U.S. Securities and Exchange Commission (SEC) to oversee bets on the results of public companies in prediction markets.

QWhat specific type of contracts does the article mention as needing oversight?

AThe article mentions contracts where payouts depend on a company achieving specific performance metrics.

QWhat key risk did Citadel Securities highlight regarding these prediction market contracts?

ACitadel Securities highlighted the risk of insider trading as a key concern.

QWhich regulatory body is currently being bypassed through a simplified procedure, according to Citadel's argument?

AAccording to Citadel, the Commodity Futures Trading Commission (CFTC) is being used through a simplified procedure to bypass the requirements applicable to securities.

QWhat is Citadel Securities' overall stance on the launch of these financial instruments via the simplified CFTC process?

ACitadel Securities is opposed to the launch of these instruments via the simplified CFTC process, arguing they should be subject to securities regulations.

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