The U.S. CFTC (U.S. derivatives regulator) reiterates its jurisdiction, as Kalshi reports insider trading cases while DOJ and state gambling regulators pursue oversight.
The U.S. CFTC (U.S. derivatives regulator) announced on Feb. 25 that it maintains full enforcement authority over unlawful activities within prediction markets. Platform Kalshi disclosed two insider trading incidents and subsequently froze related accounts. The DOJ (U.S. Department of Justice) and various state gambling regulators are also seeking oversight in this sector, leading to disputes over jurisdiction. Such conflicts highlight the complex regulatory environment for prediction markets, which often face scrutiny due to their overlap with gambling laws and financial market regulations.