U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins announced on May 21 that the fund sponsors agreed to delay the listing of several event-contract ETFs so that the SEC can initiate a public comment solicitation process. On the same day, the U.S. Commodity Futures Trading Commission (CFTC) and the National Hockey League (NHL) announced that they have signed a memorandum of understanding on integrity, establishing an information-sharing and coordinated oversight framework around contracts for professional hockey events.
SEC Event-Contract ETF Delays: Confirmation of the Public Consultation Process
SEC staff will seek public input on how the agency should respond to near-term changes in prediction markets, and whether retail investors can participate in event-contract ETF investments will depend on the outcome of the public comment solicitation. The SEC has not yet published the specific start and end dates for the public comment solicitation period.
The related ETF proposals aim to package binary bets such as election outcomes, recession outcomes, and sports event results into a form that can be traded through traditional brokerage accounts. Based on figures Atkins cited, since 2019, ETF assets under management have doubled; earlier this year, weekly open interest in prediction markets reached $1.2 billion in derivatives trading volume.
CFTC and NHL Integrity MOU: Confirmed Terms and Existing Cooperation Background
The CFTC-NHL MOU sets up a regular communication mechanism between the two parties on integrity matters, designating representatives to share information in a confidential manner and coordinate oversight. A statement from NHL Commissioner Gary Bettman is attached to the CFTC announcement, saying the agreement “enhances the ability to identify, deter, and respond to potential risks.” The NHL has previously entered into licensing agreements with Kalshi and Polymarket, providing the two prediction market platforms with hockey event settlement data. CFTC Chair Mike Selig signed a similar agreement in March 2026 with Major League Baseball (MLB).
FAQs
Why did the SEC delay event-contract ETFs instead of directly approving or rejecting them?
SEC Chair Paul Atkins explicitly said that the fund sponsors agreed to delay the listing to align with the SEC’s initiation of a public comment solicitation process. Atkins characterized this as a procedural step rather than a rejection of the proposal. The SEC has not published the specific timeline for the public comment solicitation period.
What are the specific terms of the CFTC-NHL integrity MOU?
The memorandum establishes an information-sharing and coordinated oversight mechanism between the CFTC and the NHL, designating representatives to communicate regularly about integrity issues and exchange data in a confidential manner. The NHL has reached licensing agreements with Kalshi and Polymarket to provide settlement data for events to the two platforms.
What is the purpose of the dual-agency coordination memorandum between the SEC and CFTC?
The two agencies signed a coordination memorandum in March 2026 covering product definitions and emerging technologies. The backdrop for this framework is the rapid expansion of prediction markets while falling within the regulatory scope of both the SEC (ETF products) and the CFTC (futures contracts); the coordination between the two agencies aims to avoid regulatory gaps.
