SEC Explores Regulation of Prediction Markets Amid AI Power Battle

The SEC's move is aimed at creating a framework for trading tokenized versions of stocks, which has sparked interest in the cryptocurrency space.

Traders have been actively participating in prediction markets, with significant bets placed on the AI power battle between OpenAI, Anthropic, and SpaceX. The latter's entry into this market through prediction contracts has raised eyebrows.

The SEC's proposals are part of its efforts to regulate the burgeoning sector, which has seen a surge in tokenized assets and trading volumes.