TechFlow News: On April 10, Caixin published an article titled “Financial Innovation or Insider Trading? The Rise and Controversy of Polymarket,” which points out that when insider information can be openly monetized, the boundary of prediction markets has already become blurred—raising questions about whether such markets are merely gambling disguised as finance, or even涉嫌 insider trading. Regardless of how the legal debate over whether this constitutes gambling is ultimately resolved, the fact that Polymarket uses USDC stablecoins for settlement and delivery poses a significant legal risk for participants within China.
Previously, U.S. Senators Jeff Merkley and Betty McCollum introduced the “End Prediction Market Corruption Act,” which prohibits the President, Vice President, and members of Congress from trading on prediction markets and requires that prediction market trading by their spouses and dependents be included in annual financial disclosures.
