The U.S. CFTC states it has the authority to regulate violations in prediction market trading

The U.S. Commodity Futures Trading Commission (CFTC) stated that it has "full enforcement authority" over illegal trading activities in prediction markets. Previously, the prediction market platform Kalshi reported two insider trading incidents to the CFTC and froze the accounts of the related traders.

Recently, concerns about insider trading in prediction markets have been rising. A senior official from the U.S. Department of Justice has marked prediction markets as an area suitable for enforcement, and state gaming regulators are also seeking to regulate such markets.

Last week, the CFTC stated in a court filing that it has exclusive jurisdiction over prediction markets, further intensifying jurisdictional disputes with the states. Under current regulations, companies registered with the CFTC (such as Kalshi) typically have the obligation to assist in regulating violations within their markets and report them to the agency.