CFTC Chair Rejects Insider Trading Claims in Prediction Markets
Prediction markets volume hits $29.8B, up 588% YoY as Polymarket and Kalshi dominate.CFTC Chair denied insider trading claims and confirmed enforcement within the first 100 days.Profit concentration is high, with 0.1% of accounts capturing 67% of gains on Polymarket. CFTC Chair Mike Selig pushed back against claims that insider trading is widespread in prediction markets. He said the idea that enforcement rules are unclear is false and does not match how the agency operates. Selig pointed to actions taken during his first 100 days. The agency upgraded its monitoring systems and pursued legal cases against rule breakers. He stated that anyone using inside information will face prosecution under federal law. The response directly targets criticism raised in a Wall Street Journal opinion piece that framed prediction markets as loosely regulated betting platforms. Jurisdiction Fight and Regulatory Line Selig made it clear that the Commodity Futures Trading Commission holds full control over prediction markets under the Commodity Exchange Act. He rejected arguments that these platforms fall into a grey zone. He warned that overregulation would push activity offshore. The transition would remove oversight and expose markets to manipulation from foreign actors. The agencys stance is to keep markets onshore, regulate them, and enforce existing laws. Prediction platforms like