CoinDesk reports that as Goldman Sachs restricts employee trading due to insider-trading risk, major Wall Street banks are tightening limits on employee trading in prediction markets. The policy shift stems from regulatory concerns regarding prediction-market platforms, as well as questions about whether existing insider-trading rules are sufficient to address event-driven contracts. Goldman Sachs has banned employees from trading prediction-market contracts related to the bank, elections, financial markets, macroeconomic indicators, and geopolitical developments. A Goldman Sachs spokesperson said the bank has banned employees from using material non-public information to trade across all markets. The report notes that Goldman Sachs is one of the first major companies to impose restrictions on trading in prediction markets. Many firms are still assessing whether traditional insider-trading policies are sufficient, or whether separate guidance is needed. Legal experts say that prediction-market contracts may bring additional compliance challenges because they cover a wide range of future events.