According to CoinMeta, as reported by Bloomberg, the U.S. Securities and Exchange Commission (SEC) has warned that prediction markets that offer contracts related to company earnings and business performance may face enforcement actions for insider trading, fraud, and market manipulation. SEC Enforcement Director David Woodcock stated that the agency is monitoring the activities of these prediction platforms and expects to pursue potential securities violations. He added that enforcement actions could be taken in the future, although no specific companies were named or new charges were announced. The SEC's comments focused on contracts that allow traders to bet on financial results or key performance indicators (KPIs). Such products may involve outcomes related to quarterly earnings, sales figures, or other metrics of a company's business performance.