A senior Commodity Futures Trading Commission (CFTC) official has warned the regulator will prosecute the use of insider information on prediction markets, Bloomberg reported.
CFTC Official Says Insider Trading in Prediction Markets Will Be Prosecuted: Bloomberg
1 April 2026 - 12:20 CEST
By Sandmark staff
David Miller, Enforcement Director at the CFTC, was quoted as saying a perception that the likes of Polymarket and Kalshi are somehow exempt from insider trading restrictions are a "myth in mainstream media and social media."
Speaking at a New York University panel on 31 Mar, Miller said it is permissible to for participants to rely on their own knowledge and information, but that the use of "misappropriated information" to enter bets is illegal. "We will only be prosecuting cases against those who tip or trade with misappropriated information," Miller was quoted as saying.
