Goldman Sachs and Morgan Stanley are not allowing employees to touch prediction markets, and the White House is also getting nervous—could this regulatory storm be coming?

Crypto News reported that Wall Street banks, including Goldman Sachs and Morgan Stanley, are restricting employees’ trading on prediction market platforms due to concerns about insider trading risk. Goldman Sachs has banned employees from trading event contracts related to the bank, including contracts tied to financial market, macroeconomic events, elections, and geopolitical events. A source at Morgan Stanley also said the firm has relevant policies regarding employees’ prediction market trading. The move has drawn attention from the White House and U.S. lawmakers, who have proposed legislation to limit government officials from trading on political prediction markets.