CFTC faces enforcement challenges over prediction markets Polymarket and Kalshi
The CFTC has formal oversight of prediction markets, but enforcement against insider trading is limited by staffing and resources, the report says. Kalshi told the report it had conducted hundreds of internal investigations and frozen accounts; Polymarket operates offshore, making oversight harder. The report also describes concerns about market manipulation.
Operators face scrutiny over insider trading and manipulation where regulatory monitoring is described as limited.