finance
CFTC enforcer vows crackdown on insider trading in prediction markets
David Miller, who joined the CFTC in March as director of enforcement, said insider trading rules cover prediction markets and promised vigorous enforcement as Polymarket and Kalshi tighten controls after high-profile trades.
Apr 1st 2026 ยท United States
Insights
- David Miller, the CFTC's new director of enforcement, said curbing insider trading in prediction markets is a top priority.
- Miller stated that insider trading laws apply to prediction markets and pledged aggressive detection, investigation, and prosecution.
- Polymarket and Kalshi drew regulatory scrutiny after large, well-timed bets and an employee fine for trading on nonpublic information.
- Both platforms added surveillance tools and trading restrictions following regulatory pressure and proposed legislation; Miller also flagged market manipulation, disruptive trading, retail fraud, and AML and KYC violations as priorities.
Sources
- We must stop the scourge of prediction-market gambling coming to Canada www.theglobeandmail.com
- Hiltzik: Betting on war? Why prediction markets like Kalshi and Polymarket are a problem www.latimes.com
- New top federal enforcer has his sights set on ending insider trading on prediction markets fortune.com