CFTC faces hurdles policing insider trading on prediction markets

13 articles · Updated · Bloomberg Law · May 1

Attorneys say the US derivatives regulator would struggle even if it pushes state regulators aside and wins exclusive oversight of the emerging sector.
They say the agency is constrained by anti-fraud rules modelled on federal securities law, including proving a breach of confidentiality duty.
Those legal burdens could make misconduct cases hard to sustain in markets where trades and information are often publicly scrutinised.

As insider trading scandals grow, can US regulators effectively police anonymous offshore prediction markets?

Beyond legal loopholes, do prediction markets pose a fundamental threat to national security and government integrity?