Polymarket's private-company bets draw regulatory scrutiny
- —Contracts cover about 1,600 private companies valued at over $5 trillion combined
- —Markets are available only on the offshore platform, closed to US residents
- —Resolution data comes exclusively from Nasdaq Private Market
- —Lawyers say equity-linked contracts may qualify as security-based swaps under SEC
Why it matters: An SEC ruling that the contracts are security-based swaps would impose a new regulatory regime and could freeze or unwind the markets.
Source: Crypto Briefing