CFTC enforcement director vows to crack down on prediction market insider trading

The new Director of Enforcement at the U.S. Commodity Futures Trading Commission (CFTC), David Miller, has warned that the agency will strictly punish insider trading in prediction markets, Cointelegraph reported. Miller stated that the CFTC is closely monitoring recent allegations of insider trading related to bets on various political and diplomatic events. He emphasized that the notion circulating on social media that insider trading laws do not apply to prediction markets is "completely wrong." The warning comes as the U.S. Congress and regulatory authorities are moving to establish rules to prevent such activities. In response, major platforms like Kalshi and Polymarket have introduced their own internal rules against insider trading.