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Now, as prediction markets are booming, legal experts increasingly speculate the CFTC's sibling agency — the U.S. Securities and Exchange Commission — will have a role to play soon in this novel asset class. 

"The CFTC has come out saying that they have jurisdiction over the event contracts, but there's also some that seem like they're more in the SEC's realm," said Joe Zales, a partner at King and Spalding.

This question isn't just a hypothetical: it's one that the two agencies are currently sifting through. 

Last month, the SEC and CFTC issued a joint request for public comment regarding updating, clarifying and harmonizing certain definitions and issues. Included in the topics they're reviewing are definitions related to swaps — the derivative that event contracts are classified as — along with the treatment of "novel or emerging products."

Omar Marques | Lightrocket | Getty Images

A spokesperson for prediction market platform Polymarket confirmed to CNBC that the company has engaged with both the CFTC and SEC regarding definitional frameworks for prediction market products. Rival platform Kalshi declined to comment if it has interacted with the agencies or not on this matter. 

Some companies are already using the SEC as the launching pad for their event contracts. CBOE in a filing is seeking to operate in the SEC's regulatory orbit for creating binary options contracts on key performance indicators for a slew of major companies. 

Jurisdictional questions existing between the SEC and CFTC aren't new, especially when it's about emerging asset classes. But while the two agencies have been in a similar position before, that doesn't provide much direction on this issue. 

"This is really a jump ball," said Jeff Le Riche, a partner at Husch Blackwell and a former chief trial attorney at the CFTC. "Nobody knows how it's going to turn out."

The SEC's potential

Why the SEC may have a role in regulating prediction markets — despite not having one at the moment — is thanks to the 2010 Dodd-Frank law. The law says that while the CFTC typically regulates swaps, the SEC has jurisdiction over securities-based swaps.

Securities-based swaps are financial contracts that have ties to a singular security. If an event contract asks questions about a publicly traded company, that may look more like a securities-based swap rather than a traditional one. 

The seal of the U.S. Securities and Exchange Commission (SEC) is seen at their headquarters in Washington, D.C., U.S.

Andrew Kelly | Reuters

An easy example of this, according to legal experts, is a contract that asks traders, "Will Nvidia stock end the month up more than 5%?" That has a direct link to a publicly traded stock and the resolution of the prediction market depends on the shares' performance. 

But where it gets more complicated is that securities-based swaps also are defined as financial contracts that directly affect a company's financial statements or conditions. 

"The problem is that what 'directly affects' means has really been an open question," said Sarah Razaq Sallis, also a partner at Husch Blackwell. "That ambiguity is exactly what's being tested now in real time."

Take, for example, a contract on when Apple will release its new iPhone model. That isn't directly tied to the company's share price, but when it may launch a highly anticipated product could impact Apple's stock. 

Whether that contract would be a securities-based swap or not will decide how large of a role the SEC potentially will play. 

The SEC declined a request to comment from CNBC, while the CFTC didn't respond to one.

A complicated history 

If the SEC and CFTC split the work on prediction markets, it's by no means unprecedented. 

In the options market, the CFTC regulates futures contract-based options, while the SEC regulates those tied to securities. 

But despite examples of the two working together, the sibling agencies have a decades-long rivalry on who is in charge of what.

The Commodity Futures Trading Commission headquarters in Washington, Dec. 23, 2022.

Ting Shen | Bloomberg | Getty Images

"These agencies have been at each other's throat jurisdictionally," said Jerome Tomas, a partner at Baker McKenzie and a former SEC employee. Most recently, the SEC and CFTC — before their harmonization efforts this year — clashed on who had jurisdictional control over cryptocurrencies. 

That's not to mention the two agencies work differently. The SEC is much larger, and has a longer history, while the CFTC is smaller and younger. 

"The two agencies, while similar structurally, have very different approaches to regulation," said Le Riche. "The way the rules are written at the CFTC and the way the rules are written at the SEC are fundamentally different approaches."

In March, the two agencies announced they agreed to a memorandum of understanding to establish clear regulatory definitions and jurisdictional boundaries, along with coordinating on oversight and increasing data sharing. Experts are now watching for whether the two agencies will be able to work seamlessly together despite past regulatory battles. 

"I think that they're trying to make sure that they're not stepping on each other's toes or trying to duplicate work," said Yelena Kotlarsky, a partner at King and Spalding. 

This is a convenient time for two Republican-dominated agencies to cooperate, said Aaron Klein, a senior fellow at think tank Brookings Institution. Both agencies require a five-person commission board but currently have vacant positions. 

Michael Selig, President Donald Trump's nominee to lead the Commodity Futures Trading Commission speaks during a Senate Agriculture, Nutrition, and Forestry Committee hearing on Capitol Hill on Nov. 19, 2025 in Washington, DC.

Andrew Harnik | Getty Images

Only three out of five commissioners at the SEC are currently seated and all of them are Republican. Meanwhile CFTC Chairman Michael Selig, also a Republican, is the only sitting member of the typically five-member board. Selig previously served as a chief counsel for the SEC's Crypto Task Force and was a senior advisor to SEC Chairman Paul Atkins.  

"I think this is the easiest time for these two agencies to get on the same page," Klein said.

More clarity, tighter protocols 

Legal experts broadly say though that the SEC will likely take on a more supportive role in regulating prediction markets, while the CFTC retains its primary one. That may be welcome news for the very platforms who previously had to interact with one federal agency. 

If the two agencies can avoid repeating past regulatory disagreements and provide clear definitions, the harmonization will be a benefit for prediction markets, said Peter Chan, a Baker McKenzie partner and former SEC employee. 

Kalshi is the largest regulated prediction market in the U.S., while Polymarket derives much of its volume from its international exchange. Polymarket's U.S. platform became available for domestic traders in May.

The Polymarket spokesperson added that the company is worried about potential duplicative or conflicting compliance requirements that could harm innovation. For that reason, it is encouraged by the agencies' willingness to work together to create efficient and harmonious structures. 

Kalshi and Polymarket.

Gabby Jones | Bloomberg | Martin Lelievre | Getty Images

Troy Dixon, co-head of global markets at Tradeweb Markets — a market infrastructure company that has a partnership with Kalshi — said getting clarification from the two agencies is critical for institutions who are looking to trade on prediction markets. Gaining Wall Street adoption has been a key priority for prediction market platforms of late. 

"To the extent that the SEC actually chimes in, and there's some sort of broad co-working between the two agencies… it expedites it pretty substantially," Dixon said about institutional adoption. 

Zales expects the SEC's involvement can mean tighter protections for traders, including a more cumbersome account opening process on the prediction market platforms. 

Despite the murky legal landscape, Chan believes the agencies should not rush to harmonize too quickly. Instead, he said the agencies should take the necessary time to understand the markets and products offered on event contract exchanges. 

"I think what is required is not necessarily real time rule making, but I think it requires real-time learning," Chan said. 

Disclosure: CNBC and Kalshi have a commercial relationship that includes customer acquisition and a minority investment. %!s()

New York Mayor Zohran Mamdani announced a slew of new tenant-protection proposals on Thursday, the result of his "Rental Ripoff Hearings" earlier this year. The plans included solutions for black mold, fire concerns — and a growing AI problem.

New York will now require real estate agents and listing sites to disclose the use of AI or digitally altered images and video in "misleading rental listings," Mamdani announced. "You shouldn't have to worry whether the apartment you are viewing online is real."

Then, Mamdani took a crack at one of New York's leading apartment listing sites: "It's called StreetEasy, not StreetHard."

The "Rental Ripoff Report" — a 68-page dossier of the hearing's findings and outcomes — includes more details of the mayor's AI proposal.

New York's Department of Consumer and Worker Protection will work with Zillow and StreetEasy to enforce the "clear and conspicuous disclosure" rule after it goes into effect, the report says.

"We agree with Mayor Mamdani that finding a new rental in NYC should be easy, and that's why finding an apartment on StreetEasy is… easy," a StreetEasy spokesperson wrote to Business Insider. "We look forward to continuing our work with the Mamdani administration, as well as state and federal officials, to ensure it stays that way. "

The spokesperson said the company expects listings to accurately represent a home, "whether AI is involved or not," and asked users to report listings they believed to be misleading.

It's not clear when the AI proposal will take effect. The report says the initiatives will all be implemented within the next three years, but the launches will be staggered.

Realtors told Business Insider in March that the AI misrepresentation problem was growing. They called it "housefishing." California also now requires AI disclosures in real estate listings.

Rental reforms were a key promise of Mamdani's mayoral campaign. He promised to freeze the rent for stabilized apartments, for example. For eligible tenants, that freeze will become a reality in October.

Mamdani's Thursday proposals also included universal inspection of heat complaints and easy rescheduling of inspections. "New Yorkers have been able to schedule food deliveries and the time they pick up their clothes at the dry cleaner for years," he said.

Mamdani said that the three biggest concerns the city hears about are pests, mold, and broken elevators. The mayor has plans for all three.

"No longer will landlords be allowed to slap a new coat of paint over a wall of black mold and pretend that the issue is fixed," Mamdani said, to applause from the gathered crowd in New York's Tenement Museum.

New York also plans to legally recognize tenant unions, Mamdani said.

Mamdani announced a proposal to digitize the process for cataloging landlord penalties, something he said would help spot repeat offenders — and support the landlords who "operate with integrity."

This is a key balance for Mamdani: punishing "bad landlords" without harming the good ones. Cea Weaver, director of the Mayor's Office to Protect Tenants, made that priority clear at the "Rental Ripoff Hearings."

"We know that not every landlord is a bad landlord," Weaver said, "but we want to be able to find the ones that are."

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Henry Chandonnet

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Two startups with the goal of keeping couples in love got hitched.

Arya, a relationship wellness AI startup, recently acquired Flamme, an app with activities for couples like quizzes and milestones, Business Insider has learned exclusively.

Arya and Flamme "complement each other," Arya's CEO, Offer Yehudai, told Business Insider.

While Flamme is for "day-to-day communication and prompts," Arya is focused on "emotional and physical intimacy," Yehudai said.

Flamme and Arya are betting that the relationship tech category will be more sustainable than dating apps.

"The dating apps are built that if they're successful, their users end up leaving and they struggle from churn," Nayal said.

Arya uses AI (as well as human relationship coaches) to provide users with physical products and relationship advice.

The two platforms will continue to run as stand-alone experiences, but Arya will begin to integrate some of its tools into the Flamme app.

"What we bring to the table is very strong monetization," Yehudai added.

"I've been in this space for a while," Nayal said. "I realized I have a limitation. We tried to crack monetization. We could not."

Arya has two primary ways of making money: e-commerce and paywalled services, including intimacy coaching for couples. Its subscription, which includes a box of products like sex toys, starts at about $30 a month.

"People are awkward or embarrassed or just uneducated about their love life," Yehudai said. "That's where we step in."

Nayal said that Arya's existing structure and acquisition offer felt right for building "a bigger system for relationships."

Here's how the deal is set up:

• Arya is acquiring Flamme and its 200,000 users.
• The apps are not merging, and Flamme's team will continue working on Flamme part-time (while Nayal also works on building his next company, a consulting agency for consumer apps).
• Arya isn't disclosing a price for the deal, but Yehudai said it isn't "capped" and will be paid out based on "certain milestones" met by Flamme as it integrates Arya's monetization layers.

The acquisition of Flamme is Arya's first foray into its planned roll-up strategy, following its recent $21 million growth funding round. Since its founding in 2022, Arya has raised $37 million.

Yehudai said he's been eyeing Bending Spoons' roll-up strategy as a model. Italy-based Bending Spoons has acquired several companies, such as Vimeo, WeTransfer, and AOL.

Arya is eyeing other relationship apps to fold into its suite of tools, as well as period tracking and other women's health companies.

It started with a LinkedIn DM

Like many professional relationships (and even some romantic ones), Arya and Flamme's founders got connected on LinkedIn.

Here's the exact DM Flamme's founder, Nayal, sent to Arya's CEO in June:

Subject: Hi from Flamme!Hey Offer! I'm An, founder of Flamme. Congratualtions on the raise, would love to connect and share insights we've got from 4 years in the inudstry.No ask, I just like making friends : )

(Business Insider reviewed a screenshot of the original message sent between the two.)

Sometimes a friendly first introduction leads to something more serious — like an acquisition.

After the first exchange, the two hopped on a call.

Charts are sexy

It takes more than just good vibes, though, to nail a deal.

Yehudai told Business Insider that two slides stood out from Flamme's pitch deck — particularly those that showcased the startup's retention and usage.

1. Flamme's traction stood out to Arya

2. Flamme also included a chart documenting its retention

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Sydney Bradley

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Sydney Bradley has been covering media and tech for Business Insider since 2020. She breaks news and writes extensively about Instagram and Facebook, as well as new platforms and startups shaping social media, dating apps, the creator economy, venture capital, and tech culture.Sydney's reporting on Instagram was nominated as a finalist for the 2021 Los Angeles Press Club National Entertainment Journalism Awards.She graduated from the University of Virginia with a degree in American Studies. You can follow Sydney's work on LinkedIn, Twitter, and Instagram at @sydneykbradley.Have a tip? You can also contact her via encrypted messaging app Signal (@sydneykbradley.123), encrypted email ([email protected]), or standard email ([email protected]). Use a personal email address, a nonwork WiFi network, and a nonwork device; here’s our guide to sharing information securely.Selected stories:

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• Death isn't the end: Meta patented an AI that lets you keep posting from beyond the grave
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• Hitting the social media jackpot is harder than ever — and it's changing the creator economy

• Big Tech's AI obsession is rattling creators

• New startups race to bring back the 'old internet' vibes of the 2000s
• The mysterious demise of a $1 billion social shopping app

• The loneliness epidemic has given rise to a new crop of startups aiming to help people connect in real life
• It's not just you — no one is posting on social media anymore
• How Instagram's unpredictable changes are giving influencers whiplash
• Why YouTube subscriber counts have become an unreliable 'vanity metric' in the era of short video
• Inside the week that changed Facebook forever

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Key Facts

Tillis said at a Senate Judiciary Committee hearing he has “not made a final decision” on whether to vote for Blanche’s confirmation and, referring to Blanche meeting with Epstein victims, said he “expect[s] that meeting to occur before I’m willing to vote [Blanche] out of this committee.”

Blanche’s nomination as attorney general has to first be approved by the Senate Judiciary Committee before going to the full Republican-controlled Senate for a vote.

Epstein victims have long protested they’ve been unable to meet with the Justice Department about Epstein and the Epstein files, which victims complained included some of their information.

Blanche testified during his confirmation hearing Wednesday he was willing to meet with victims and their counsel, flip-flopping after previously claiming during the hearing he legally wasn’t allowed to meet with the victims directly.

Epstein victim Dani Bensky sharply criticized Blanche to the committee Thursday for not communicating with her and other survivors, saying the acting AG has “simply ignored us for the last eight months” and “been radio silent.”

The Justice Department has not yet responded to a request for comment.

Crucial Quote

“I’m trying to get to yes, but this is a very important part of getting to yes,” Tillis said Thursday about his condition that Blanche meet with Epstein victims, noting he has a “positive predisposition” toward the nominee. “If he said he could do it today, then he can certainly do it over the next two weeks,” Tillis added about Blanche meeting with victims.

What to Watch for

The Senate Judiciary Committee is expected to vote on Blanche’s confirmation in two weeks. Republicans only hold a one-seat majority on the committee after Sen. Lindsey Graham, R-S.C., died over the weekend, making Tillis’ vote crucial to moving the nomination forward.

Will Any Other Republican Senators Vote Against Blanche?

In addition to Tillis, Sen. John Cornyn, R-Texas, also expressed reservations about Blanche. Cornyn, who also sits on the Senate Judiciary Committee, told reporters Wednesday he still remained undecided about approving Blanche after questioning the acting AG during his confirmation hearing, saying he still needs better assurances from Blanche that the DOJ will not move forward with its $1.8 billion “anti-weaponization” fund for political allies of President Donald Trump.Tillis and Cornyn have emerged as two of the GOP senators who are now considered to be potential swing votes when it comes to approving Trump administration policies and personnel, as both will leave the Senate at the end of this term.

What Did Todd Blanche Say Wednesday About Meeting With Epstein Victims?

Blanche gave conflicting information Wednesday when it came to meeting with Epstein victims. Under questioning from Sen. Dick Durbin, D-Ill., Blanche claimed he could not meet with survivors directly if they have attorneys, saying, “If they have lawyers, as you know, I’m prohibited from meeting directly with them.” Blanche said other people at the DOJ could meet with victims if they’re represented by counsel—but also in the same exchange suggested he could meet with them as well, contradicting himself by saying, “I can meet with them. My staff will meet with them.” Sen. Cory Booker, D-N.J., went on to tell Blanche during his questioning that the acting AG’s claims he could not meet with victims directly are “utter nonsense” and not based on any legal statutes. Blanche then appeared to backtrack and suggest he was allowed to meet with victims directly when questioned about the issue by Sen. Richard Blumenthal, D-Conn., who also challenged Blanche’s previous assertions that he wasn’t allowed to meet with victims directly. “I never said I can’t meet with them,” Blanche said, claiming he only said before that he had to “meet through counsel” if they have lawyers. “Of course I can meet with them, I’m the acting attorney general of the United States, so yes I can.” The nominee also suggested the DOJ could swiftly meet with victims, telling Durbin, “It could get done as soon as today. It could have gotten done last week. We remain available to meet with any victim or their representative at any time.”

What Have Epstein Victims Said About Meeting With Blanche?

Epstein survivors have repeatedly pushed back when DOJ officials have suggested they’ve met with the victims or their counsel. After Blanche claimed in a previous hearing he had spoken with victims, a group of victims released a statement debunking his comments and making clear they had not met with any DOJ officials, adding, “We should not have to be this persistent to engage with DOJ.” In her testimony to the Senate Judiciary Committee on Thursday, Bensky denounced Blanche and said his comments Wednesday saying he’d meet with victims were “the first time that that was ever communicated to us.” Saying survivors had been “dismissed and ignored” by the DOJ, Bensky told lawmakers, “Todd Blanche has never attempted to listen to us, the crime victims. Survivors in this room repeatedly asked to meet with Todd Blanche, through multiple channels. He never responded.” Bensky also argued the Trump administration was refusing to look into “investigative leads” into people who could be prosecuted, which could be gathered by speaking with the victims, and slammed the DOJ for victim information that was not redacted in the Epstein files. While Blanche said during his confirmation hearing the DOJ had officials working “24/7” to quickly fix issues with redactions, Bensky argued that was “untrue,” as she and other victims had to repeatedly “beg” the DOJ to remove their information and wait months for issues to be fixed.

Further Reading

Todd Blanche Says ‘Sorry’ To Epstein Victims—But Defends DOJ—In Testy Confirmation Hearing (Forbes) %!s()

This week, EV startup Chip Motors unveiled a $15,000 vehicle that's part golf cart, part SUV, and part personal assistant. This Fiat Topolino rival will seat up to six people, and it's got a wealth of features that it claims help make "a big life feel lighter."

In an interview with InsideEVs, Jameson Detweiler, cofounder of Chip Motors, said he saw a shift in driving habits in Miami during the COVID-19 pandemic. Instead of using cars, people were opting to run errands in LSVs, such as golf carts.

But a standard golf cart isn't built to tackle roads every day, and it certainly can't pick up your groceries for you. The new Chip EV, on the other hand, claims it will self-park, drive home, pick up curbside orders, and even take itself to a car wash with the available "Chip Go" service, which employs real people to remotely operate the vehicle when nobody is inside.

It'll do it with a smile, too. Instead of a traditional grille, Chip's front fascia is dominated by a screen of pixels that light up to reveal a friendly smirk. Promotional videos show Chip blinking, winking, sticking its tongue out, and talking to its passengers.

The six-seater's boxy frame is roughly the same footprint as a Mini Cooper, and the four-seater is more similar in size to a golf cart. Both come standard without a roof or doors, but those can be added. Also available are a bike rack, a surf rack, off-road tires, and a TV and speaker set that is revealed when you lift the hood. The Chip EV is highly customizable, with nine colors to choose from and additional stripes and bizarre decals to peruse—including an alien abduction and an earthworm on a fishing hook.

Preorders are open now, and the Chip EV can be reserved for a fully refundable $250, although pricing is still largely unknown. The four-seater configuration will start at $15,000, while the six-seater starts at $18,000, but costs for add-ons and the Chip Go! service haven't been released yet. The company says deliveries are planned to start in 2027.

➡️ Skip the lot. Let Car and Driver help you find your next car.

Alayna Wilkening grew up reading motorsport magazines and following her grandpa around his Chevrolet dealership's showroom floor. In true Hoosier fashion, her first car was a hot pink custom cardboard "Fiero-vette" for her kindergarten Kindy 500 race. She now autocrosses a 1994 Miata with her dad, which she learned to drive the night before her first event. Alayna went to Indiana University and graduated with a degree in journalism and a minor in graphic design. As a testament to her great taste in cars, her first real one was a metallic orange 2007 Chevy HHR, which she lovingly called "The Dumptruck."   %!s()