IIA urges stronger oversight of prediction markets
Updated
Updated · Accounting Today · May 1
IIA urges stronger oversight of prediction markets
9 articles · Updated · Accounting Today · May 1
In letters sent Thursday, the audit body cited risks at platforms including Kalshi and Polymarket and proposed a GAO study plus board-level internal audit functions at regulated exchanges.
Its recommendations call for formal controls against insider trading, market manipulation and conflicts of interest, alongside regulatory standards aligned more closely with established financial markets.
The IIA said prediction markets' growth and information asymmetries could erode trust if governance, transparency and accountability do not keep pace with platforms increasingly treated as CFTC-regulated financial products.
When corporate secrets become betting slips, are companies ready for this new insider trading threat?
With federal and state laws clashing, who will ultimately decide the rules for betting on real-world events?