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Jay Clayton urges US regulators to distinguish prediction contracts from gambling

Regulation

Former SEC chair Jay Clayton said at a 2 December event in New York that regulators should assess prediction contracts by their economic function, distinguishing products resembling financial options from sports bets. His comments come amid disputes over state gambling laws and the Commodity Futures Trading Commission’s role in regulating prediction markets.

The distinction could affect whether prediction-market platforms face state gambling rules or federal derivatives oversight.

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Regulation

Polymarket reportedly lobbies European regulators over prediction-market classification

Polymarket has reportedly held discussions with regulators in London and Brussels to argue that its event contracts should be treated as financial products rather than gambling. The discussions reportedly include the UK Financial Conduct Authority and the European Securities and Markets Authority, as the company seeks a regulatory route into European jurisdictions where it has faced resistance.

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