Outgoing CFTC Commissioner Kristin N. Johnson warns about the risks prediction markets pose to retail investors due to lack of oversight and regulatory clarity. She expressed disappointment in the agency’s failure to implement a rule addressing political event contracts, which have gained popularity. Johnson also criticized the “rent or buy my license” trend in derivatives markets, linking poor internal controls to devastating consequences.

The CFTC granted regulatory relief to Polymarket by issuing a no-action letter to QCX LLC and QC Clearing LLC, allowing the prediction market platform to operate event-based markets in the US without immediate penalties. Polymarket recently acquired QCEX, a CFTC-licensed exchange and clearinghouse, for $112 million.

Read more at Cointelegraph: Kristin Johnson Warns of Retail Risk, Regulatory Gaps in Prediction Markets