Deep Tide TechFlow News, February 26 — According to Reuters, the U.S. Commodity Futures Trading Commission (CFTC) announced on Wednesday that it has the authority to regulate and prevent illegal trading activities in prediction markets. This statement came after the prediction market platform Kalshi reported two insider trading cases to the agency.
The CFTC stated that it has “full regulatory authority” over misconduct in event market contracts and cited Kalshi’s report, which has flagged and frozen trading accounts related to the two insider trading incidents. As prediction markets grow, concerns over insider trading are increasing. A senior official from the U.S. Department of Justice has listed it as a key enforcement focus this month. State gaming regulators are also seeking to oversee such markets, as they compete with casinos and traditional betting companies.
Previously, Kalshi took action against insider trading, issuing bans and fines to an employee of MrBeast and a former California gubernatorial candidate.
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Reuters: US CFTC states it has authority to regulate misconduct in prediction markets
Deep Tide TechFlow News, February 26 — According to Reuters, the U.S. Commodity Futures Trading Commission (CFTC) announced on Wednesday that it has the authority to regulate and prevent illegal trading activities in prediction markets. This statement came after the prediction market platform Kalshi reported two insider trading cases to the agency.
The CFTC stated that it has “full regulatory authority” over misconduct in event market contracts and cited Kalshi’s report, which has flagged and frozen trading accounts related to the two insider trading incidents. As prediction markets grow, concerns over insider trading are increasing. A senior official from the U.S. Department of Justice has listed it as a key enforcement focus this month. State gaming regulators are also seeking to oversee such markets, as they compete with casinos and traditional betting companies.
Previously, Kalshi took action against insider trading, issuing bans and fines to an employee of MrBeast and a former California gubernatorial candidate.