Because it is gambling.

NFTs have zero value but people seem to derive non-monetary value from them. Naked option trading is a form of gambling (as well as risk management) and, as a result, it is regulated.

Polymarket is a "financial investment" for regulatory purposes but is gambling, there is no legitimate risk management reason. As a result, there is massive scope for harm because it is gambling without any of the gambling regulations that exist in the US.

People on this site appear to be unaware that gambling is regulated where legal. I will give you an example: Polymarket do not comply with state regulator's exclusion/no market lists. This is immoral. Gambling companies should not take bets from users who have gambling problems, they should not market to them.

Offshore unregulated books will often market themselves to addicts saying that they do not comply with regulator's exclusion lists...this is an onshore book operating in Lexington Avenue New York, not out of a shed with a pig sty in Curaco. It is unbelievable at many levels.