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Democrats pressure the CFTC and ethical regulatory agencies over insider trading issues in prediction markets
Golden Finance reported that on March 31, the market’s positive outlook is facing increasingly strict scrutiny for insider trading allegations, prompting Kalshi and Polymarket to plan protective measures to curb potential incidents. At least 42 Democratic lawmakers sent a letter to the U.S. commodities regulator and the U.S. Office of Government Ethics, urging them to warn federal employees not to trade on prediction markets using insider information.
The letter to the Chairman of the U.S. Commodity Futures Trading Commission, Mike Selig, and the Office of Government Ethics said that it was prompted by “multiple incidents” that have raised “speculation about whether federal employees may engage in insider trading on prediction markets.”