Jeremy Liabo Speaks to Bloomberg Law on Prediction Markets Regulation

Asset management partner Jeremy Liabo was quoted in a recent Bloomberg Law article on the SEC's emerging role in regulating the rapidly growing prediction markets industry.

Jeremy commented on the SEC and CFTC's joint request for public comment on the definitions of certain swaps and derivatives products, a move that could open prediction markets to oversight by both agencies. He called the joint effort a “welcome first step.”

Jeremy noted the risk that, without coordination, a contract could pass CFTC muster but later face SEC scrutiny. He also emphasized the importance of regulatory clarity as prediction market exchanges look to expand into areas that may involve securities.

For more on our thinking on prediction markets, read our client alerts on the CFTC's proposed rule changes and what prediction markets mean for your compliance program.