David Woodcock, Director of the U.S. SEC's Division of Enforcement, confirmed that the agency is closely monitoring fraud and securities violations in prediction markets, with insider trading and market manipulation identified as primary concerns. Speaking in an interview, Woodcock indicated that the SEC expects to take enforcement action in this space in the future. Woodcock noted that prediction market trading tied to key performance metrics or financial reporting data of public companies may fall within the SEC's regulatory scope. Currently, major prediction platforms such as Kalshi and Polymarket's U.S. operations are primarily regulated by the Commodity Futures Trading Commission (CFTC).