John O’Connell Published in WealthManagement.com: Prediction Markets Find Their Regulatory Footing, But the Boundaries Remain Clear

John O’Connell authored this piece for WealthManagement.com, discussing how prediction markets have moved from academic curiosities to regulated financial venues – but the regulatory environment that governs them is still evolving. Wealth management executives now face a new question: If clients can legally trade contracts tied to real world events, what guardrails define acceptable market activity, and where does the line remain firmly closed?

Prediction markets are gaining traction but the rules surrounding them are unclear. Platforms must operate within the regulatory perimeter, or they must limit their activity to the boundaries of specific exemptions. Wealth management firms should understand this landscape, not to offer these products, but to advise clients responsibly and to anticipate how event-based trading will influence future market behavior.