Coinbase CEO Brian Armstrong clarified his stance on prediction markets, emphasizing the distinction between market integrity and uncovering the truth. He opposes insider trading in traditional financial markets but stated that if prediction markets are to be optimized for accurate real-world forecasts, “you absolutely need insider trading” to obtain genuine signals. He cited the Suez Canal as an example, pointing out that allowing a naval officer with firsthand knowledge of Houthi positions to place bets could provide valuable insights. Armstrong denied the widespread claim that he supports insider trading, corrected a previous misquote suggesting that insider trading is “absolutely necessary,” and highlighted the subtle differences. An X user initially misinterpreted his remarks but later acknowledged the wording was correct and defended their interpretation based on Armstrong’s comments at 52 minutes and 30 seconds.