Are Polymarket bets considered securities?
This is a complex legal question without a definitive answer. Prediction market contracts occupy a gray area between securities and commodities.
The CFTC has jurisdiction over derivatives and commodities, while the SEC has historically overseen securities. In 2025, the DC District Court ruled that Kalshi's congressional control contracts were not illegal gambling, suggesting prediction market contracts may have legal standing. Polymarket was fined by the CFTC in 2022 for running an unregistered derivatives platform.
The SEC has not explicitly classified prediction market tokens as securities. For users: Individual circumstances may vary. If you're uncertain about the legal classification of your activities, consult a legal professional.
The regulatory landscape for prediction markets is still evolving.