Goldman Sachs, JPMorgan, and Other Institutions Tighten Prediction Market Trading Rules Amid Growing Insider Trading Concerns

Odaily Planet Daily reported: As prediction markets raise concerns about insider trading, Goldman Sachs has prohibited its employees from trading prediction market contracts related to the bank's own events, elections, financial markets, macroeconomic data, and geopolitics. Financial institutions including Morgan Stanley, JPMorgan Chase, and Bank of America are also formulating or updating relevant policies, with Bank of America already clarifying prohibited trading behaviors for its employees regarding prediction markets.

Previously, the U.S. Commodity Futures Trading Commission (CFTC) and the Department of Justice accused a Google employee of using non-public information to trade contracts related to "Search of the Year" on Polymarket, profiting approximately $1.2 million. Legal experts state that the CFTC still lacks mature precedents in enforcement against insider trading in prediction markets, and the wide variety of prediction market contracts further increases regulatory difficulty.

Currently, Kalshi and Polymarket have respectively launched employment verification tools and are collaborating with Chainalysis and Palantir to monitor suspicious trading activities. (CNBC)