Controversy Swirls Over Insider Trading on Prediction Markets

[nihalsari]

The timing and magnitude of the Maduro bet have reignited debate about insider trading on prediction markets. Critics argue that casually timed, high-stakes wagers on geopolitical events — made just before real military action — suggest access to non-public information, fueling calls for regulatory reform. Unlike regulated markets such as stocks, prediction platforms like Polymarket currently lack explicit insider-trading bans, leaving enforcement in a grey zone.

Some lawmakers are already pushing for legislation to prohibit insiders, especially public officials, from placing bets when they have privileged knowledge. These proposals aim to bring more traditional trading rules to prediction markets to ensure fairness and public trust.

[cryptobro]

no insider rules was fine when this was niche, not when stakes are this high