Additionally, the CFTC and federal lawmakers continue to evaluate how best to address the potential for insider trading and other abusive trading practices on prediction markets. As noted by the Request and the DMO Advisory, certain event contracts are particularly susceptible to manipulation, such as those that are based on events within the control of one or several individuals. 42 However, the specific types of information that should be treated as material and non- public, and the types of trading that should be seen as manipulative and impermissible will both require sustained engagement and discussion. It is likely that the CFTC will continue to support innovation and activity in this space, but it has also demonstrated that it will take steps to protect market participants as necessary. It remains to be seen how the CFTC will maintain the balance between those objectives.
42 Prediction Markets, 91 Fed. Reg. 12516, 12522 (Mar. 16, 2026).
March 2026 / Page 15
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