CFTC Targets Insider Trading As Prediction Markets Come Under Scrutiny

The Commodity Futures Trading Commission is stepping up oversight as prediction markets surge in popularity, warning traders that insider trading will not be tolerated.
CFTC Cracks Down On Prediction Market Insider Trading
Speaking Tuesday at New York University’s School of Law, CFTC enforcement chief David Miller said insider trading on platforms like Kalshi and Polymarket is illegal and will be a top enforcement priority, reported Business Insider.
“A myth has spread that insider trading is permissible, or even encouraged, in the prediction markets,” Miller said.
He added, “Prominent individuals in finance, media, and particularly on social media, have contended that insider trading law does not apply to these markets.”
He continued, “These comments all suggest that insider trading is an important and acceptable part of the prediction market ecosystem. Not so.”
Miller said the CFTC will hire more staff to investigate cases and negotiate settlements, emphasizing that the agency has the resources to enforce rules despite …Full story available on Benzinga.com

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