TechFlow News, February 26: According to Reuters, the U.S. Commodity Futures Trading Commission (CFTC) stated on Wednesday that it possesses authority to regulate illegal trading activities in prediction markets. This statement followed Kalshi, a prediction market platform, reporting two insider trading cases to the agency.
The CFTC asserted its “full regulatory authority” over misconduct involving event-market contracts and cited Kalshi’s report, which noted that the company had flagged and frozen trading accounts linked to the two insider trading incidents. As prediction markets grow, concerns about insider trading are mounting; a senior official at the U.S. Department of Justice designated it a priority enforcement area this month. State-level gambling regulators are also seeking oversight of such markets, as they increasingly compete with casinos and traditional gambling operators.
Earlier news: Kalshi cracked down on insider trading, imposing bans and fines on an employee of MrBeast and a former California gubernatorial candidate.
