The post US regulators target equity tokenization, prediction markets growth in new recommendations appeared on BitcoinEthereumNews.com.

America’s two principal financial market regulators appear to be moving in concert in terms of providing clarity for some of the fastest-growing corners of the markets, which are prediction markets and tokenized equities.  The Commodity Futures Trading Commission (CFTC), Division of Market Oversight, issued a prediction markets advisory regarding the listing of trading event contracts on Thursday, March 12, 2026. In a separate event that occurred the same day, the Securities and Exchange Commission (SEC) Chairman, Paul Atkins, used his opening remarks at the agency’s Investor Advisory Committee (IAC) to reaffirm that a long-awaited innovation exemption for tokenized equity securities is imminent.  Atkins stated, “I expect the Commission to soon consider an innovation exemption to facilitate limited trading of certain tokenized securities with an eye toward developing a long-term regulatory framework.”  He said this after he stated that the committee will be voting on recommendations regarding the tokenization of equity securities. What is the CFTC telling prediction market platforms to do? In its release, the CFTC wrote, “In light of the rapid rise in popularity of prediction markets, the division seeks to encourage growth and innovation in these markets while reminding designated contract markets of their regulatory obligations pursuant to the Commodity Exchange Act and Commission regulations.” The CFTC division acknowledged that the popularity of prediction markets has been on a rapid rise, and it is seeking to encourage growth and innovation in these markets. The advisory, directed at registered exchanges including Kalshi, Coinbase Derivatives, and Polymarket, also aims to remind the “designated contract markets of their regulatory obligations pursuant to the Commodity Exchange Act and Commission regulations.” Under DCM Core Principle 3, exchanges are required to list only contracts that are not readily susceptible to manipulation, and the CFTC’s guidance warns that overly broad or general contract specifications may…

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Filed under: News - @ March 12, 2026 9:26 pm