SEC chair Atkins blocks two dozen prediction market ETFs indefinitely
SEC chair Paul Atkins is indefinitely blocking more than two dozen proposed prediction-market ETFs that would let mainstream brokerage investors wager on elections, recessions, tech layoffs, and other real-world events, with no timeline set for reconsideration. The affected applications include products from Roundhill, GraniteShares, and Bitwise that were scheduled to begin launching in early May. The SEC has requested additional information about mechanics and risks from the sponsors. The indefinite hold follows weeks of serial delays that began in early May and now leaves these event-contract funds in regulatory limbo while direct CFTC-regulated platforms such as Kalshi and Polymarket continue expanding.
Roundhill, GraniteShares, and Bitwise must absorb open-ended compliance costs with no SEC deadline, while Kalshi and Polymarket lose the retail brokerage channel that would have bypassed direct platform signup friction.
Joins the Senate's unanimous congressional trading ban and Minnesota's proposed state-level prohibition as the third major regulatory front this month against the prediction-markets sector, with Polymarket simultaneously filing for CFTC sports-parlay listings to bypass the ETF channel entirely.