On the Freakonmics blog, Justin Wolfers discusses some of the progress made related to the adoption of prediction markets in the US. Like many innovative ideas, progress can be stalled through legal hurdles. Wolfers’ asks:
Are prediction markets legitimate business tools, an alternative set of securities markets requiring SEC regulation, illegal betting markets, allowable games of skill, or something else altogether?
That’s a meaty question if there ever was one. Wolfers’ goes on to describe actions taken by the Commodity Futures Trading Commission to help sort it out including determining whether or not the markets fall into their jurisdiction.
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