CFTC Warns Prediction Market Insider Traders

The US Commodity Futures Trading Commission (CFTC) has issued a stern warning that insider trading laws apply to prediction markets, debunking the myth that these platforms are exempt from regulation. Enforcement director David Miller emphasized that the agency considers event contracts to be swaps rather than gaming, and will actively prosecute individuals who trade based on misappropriated information. This move comes amid rising concerns over suspicious trading activity linked to major political and geopolitical events, prompting both self-regulation by platforms like Polymarket and Kalshi and proposed federal legislation to curb market abuse.

(Source：Cointelegraph)