The Commodity Futures Trading Commission has a problem: It’s not very good at policing insider trading. And insider trading has become a pressing concern for prediction markets.
Even Kalshi’s recently publicized fines for insider trading — levied against a politician and an employee of YouTube influencer MrBeast — were effectively self-policing. The exchange says it’s opened 200 investigations, frozen some accounts, and had a dozen of its investigations turn into active cases.
“The…
