CFTC Pledges Crackdown on Prediction Markets Insider Trading

Prediction markets licensed and regulated by the CFTC must work to eradicate insider trading Enforcement Director takes insider trading “extremely seriously” Limiting insider trading on prediction markets is a primary concern at the CFTC

The newly appointed director of enforcement at the Commodity Futures Trading Commission (CTFC) has pledged to “vigorously” crack down on insider trading on federally regulated prediction markets, listing it among his top priorities in coming into his new role. David Miller, the director of enforcement at the Commodity Futures Trading Commission, says the prediction markets the federal agency regulates bear some of the responsibility in combatting insider trading. Miller has pledged to crack down on fraudulent activity on the financial trading platforms. (Image: CFTC.gov) Michael Selig, President Donald Trump’s hand-picked chair of the CFTC, named David Miller as director of enforcement of the independent federal agency in early March.

Miller, a former assistant US attorney in New York’s Southern District, where he served as a member of the office’s Securities and Commodities Fraud Task Force, says eradicating insider trading from prediction markets is among his top priorities.

“I take insider trading extremely seriously. Insider trading in the prediction markets, where there is misappropriated information, is precisely the kind of serious violation that we are going after vigorously. We will aggressively detect, investigate, and, where appropriate, prosecute insider trading in the prediction markets,” Miller said Thursday at a CFTC enforcement event at NYU School of Law. Prediction markets allow traders to buy and sell shares of future outcomes. Such exchanges have traditionally dealt in commodities speculation, but more recently, platforms like Kalshi have offered trading contracts on the outcomes of everything from elections to tonight’s NBA games. Operator Responsi