CFTC Declares Authority to Regulate Trading Violations in Prediction Markets

Odaily News The U.S. Commodity Futures Trading Commission (CFTC) stated on February 25th that it possesses "full enforcement authority" over illegal trading activities in prediction markets. Previously, the prediction market platform Kalshi reported two insider trading incidents to the CFTC and froze the accounts of the involved traders.

Recently, concerns surrounding insider trading in prediction markets have been on the rise. A senior official from the U.S. Department of Justice this month flagged prediction markets as an area suitable for enforcement, and state gambling regulators are also seeking to regulate such markets. The CFTC's statement in a court filing last week that it has exclusive jurisdiction over prediction markets has further intensified jurisdictional disputes with the states.

Under current regulations, companies registered with the CFTC (such as Kalshi) are typically obligated to assist in monitoring violations within their markets and report them to the agency. (Reuters)