Prediction markets are evolving from a niche hobby into a sophisticated asset class as trading volumes for events like the NCAA Men's Basketball Tournament surge by 3,000% year-over-year. Unlike traditional sportsbooks, these federally regulated exchanges allow for peer-to-peer trading and flexible exits, mimicking the structure of traditional financial markets. Asaf Meir of Solidus Labs discusses how this shift attracts a new generation of retail investors looking to hedge risk through geopolitical and economic outcomes. He also highlights recent guidance from the Commodity Futures Trading Commission (CFTC) regarding market integrity and the necessity of real-time surveillance to prevent manipulation in the U.S. financial landscape.