TechFlow news, July 10: According to CNBC, with the rapid rise of prediction markets (Prediction Markets), insider trading risks have sparked high-level concern at both regulatory and corporate levels. Goldman Sachs has explicitly prohibited employees from trading on contracts involving the bank's own events, elections, financial markets, macroeconomic data, and geopolitics; Morgan Stanley has incorporated prediction market trading regulations into its employee code of conduct; Bank of America is also updating internal policies to clearly define prohibited employee behaviors.
Previously, the U.S. Commodity Futures Trading Commission (CFTC) and the Department of Justice filed a lawsuit against Google employee Michele Spagnuolo in May of this year, accusing him of using internal non-public information to trade on Polymarket, profiting approximately $1.2 million, becoming the first insider trading case involving prediction markets related to a private enterprise. Legal experts point out that CFTC enforcement in this field is still a "blank canvas," regulatory rules remain unclear, and suggest enterprises proactively update insider trading policies, clearly include prediction markets within the scope of regulation, and conduct specialized training for employees to avoid potential legal liabilities.
