Smarkets, the second-largest betting exchange in the UK, has applied for licenses with the U.S. Commodity Futures Trading Commission (CFTC) to enter the U.S. prediction market sector, aiming for a launch by the end of 2026 if approved. Founded in 2008, Smarkets has processed approximately $50 billion in lifetime trading volume and is currently profitable, bolstered by support from Susquehanna Growth Equity. This application aligns Smarkets with other sports-focused prediction market entrants awaiting CFTC approval, amidst increasing regulatory scrutiny, including a pending congressional bill aimed at criminalizing insider trading in prediction markets.
Smarkets: Smarkets is a UK-based betting exchange operating as the second-largest in the country, providing low-commission trading on prediction markets for sports, politics, and global events through a hybrid architecture that includes the SBK sportsbook interface atop its exchange matching engine. The platform maintains a sister market-making firm to ensure liquidity across events. It recently applied to the CFTC for Designated Contract Market and Designated Clearing Organization licenses via Smarkets Board of Trade Exchange LLC to launch in the U.S. prediction market sector by the end of 2026.
Polymarket: Polymarket is a major prediction market platform where users trade on outcomes ranging from sports events like the Super Bowl to politics. It has re-entered the U.S. market through a CFTC-regulated acquisition and partnerships such as with Betr and sports leagues. Amid state lawsuits, it receives CFTC support affirming federal jurisdiction over prediction markets.
Jason Trost: Jason Trost is the Founder and CEO of Smarkets, overseeing its development as a prediction market platform. He advocates for exchange-based market structures over broker models in the prediction market space. Trost recently highlighted Smarkets’ hybrid technology and liquidity provisions as key differentiators while pursuing U.S. regulatory approval.
`json
{
“Regulatory Filings”: “Smarkets has applied to the CFTC for Designated Contract Market and Designated Clearing Organization licenses to enter the U.S. prediction market sector.”,
“Insider Trading Focus”: “Congressional bill H.R. 7004 aims to criminalize prediction market trading on classified government information amid rising scrutiny.”
}
`
Source: WuBlockchain
