SEC Pauses Prediction ETFs; CFTC, NHL Agree Data Pact

The Securities and Exchange Commission has delayed reviews of several proposed exchange-traded funds that would package event contracts tied to prediction markets and will open a public comment period on how to regulate those products. At the same time, the Commodity Futures Trading Commission signed a memorandum of understanding with the National Hockey League to share data and coordinate monitoring of hockey-related event contracts.

The delayed ETF filings come from firms including Roundhill Investments, GraniteShares and Bitwise’s PredictionShares brand. Regulators say roughly two dozen proposals have been filed since February to wrap binary bets on elections, recessions and sports outcomes into brokerage-friendly funds. SEC Chair Paul Atkins described the pause as a procedural action and directed agency staff to solicit public input on how to respond to rapid market changes. Atkins noted that ETFs “have been-and remain-a major driver of innovation in the securities markets,” and pointed to the tripling of ETF assets since 2019.

Under the CFTC-NHL memorandum, designated representatives from the agency and the league will regularly exchange confidential information and coordinate on integrity issues to identify and deter improper activity tied to hockey event contracts. The NHL already supplies settlement feeds to some prediction platforms under licensing agreements. The league attached a statement, which read: “Our agreement with the CFTC enhances the comprehensive integrity monitoring systems already in place and strengthens our ability to identify, deter, and address potential risks.”

CFTC Chair Mike Selig previously signed a similar agreement with Major League Baseball in March and has warned about fraud risks in prediction market venues. The SEC and CFTC also signed a coordination memorandum in March 2026 addressing product definitions and emerging technology, reflecting a joint regulatory approach under the current administration.

Industry data cited by regulators show prediction market open interest reached about $1.2 billion in weekly volume earlier this year. Whether retail investors will gain access to event-contract ETFs now depends on the SEC public comment process. Sponsors of the proposed funds say the products would expand investor choice by offering binary outcome exposure through standard brokerage accounts. Regulators and sports leagues cite market integrity and fraud or manipulation risks as reasons for coordinated oversight.