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CFTC enforcement chief prioritises insider trading in prediction markets

Regulation

CFTC enforcement director David Miller said the agency plans to detect, investigate and, where appropriate, prosecute insider trading in prediction markets. He also said exchanges must maintain surveillance and compliance controls, protect markets from abusive practices and avoid listing contracts susceptible to manipulation.

Prediction-market exchanges face stated expectations to monitor trading and guard against insider dealing and manipulation.

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Regulation

US officials scrutinise prediction markets over insider-trading concerns

US lawmakers from both parties questioned the head of a federal regulator about prediction markets at a hearing, as state and federal scrutiny grew. Polymarket halted a market on the timing of a US airman’s rescue after Rep. Seth Moulton objected, saying it did not meet the platform’s integrity standards. The White House also warned staff against trading on such markets with private information.

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