# Cleary Gottlieb

**Type:** Law firm  
**Focus:** Derivatives regulation, SEC/CFTC jurisdictional analysis  
**Relevance:** Authoritative secondary analysis on prediction market regulatory frameworks

## Overview

Cleary Gottlieb is a top-tier global law firm with significant derivatives regulatory practice. Their analysis carries weight in SEC/CFTC boundary law interpretation.

## Timeline

- **2026-04-15** — Published analysis identifying SEC jurisdiction over company-specific event contracts as security-based swaps, noting unresolved CFTC-SEC jurisdictional boundaries

## Key Contributions

- Identified the SEC security-based swap jurisdictional track for company-specific event contracts as distinct from CFTC event contract framework
- Noted March 2026 CFTC-SEC MOU commitment to develop joint interpretations for company-specific event contract classification
- Clarified that event contracts are regulated based on structure, not subject matter

## Regulatory Framework Analysis

**CFTC jurisdiction:** Event contracts structured as swaps/futures on registered DCMs. CFTC claims exclusive jurisdiction with state gambling law preemption for DCM-listed contracts.

**SEC jurisdiction:** Event contracts qualifying as security-based swaps where events "directly affect the financial statements, financial condition, or financial obligations of the issuer."

**Unresolved gap:** Company-specific event contracts remain in jurisdictional limbo between CFTC and SEC frameworks.

## Sources

- [Prediction Markets for Those Who Don't Predict](https://www.clearygottlieb.com/news-and-insights/publication-listing/prediction-markets-for-those-who-dont-predict-and-those-who-do) (April 2026)