Prediction markets should dial back faulty filings for incentives to boost trading: CFTC
60-second summary
The CFTC warns that prediction markets are adopting faulty filing practices, potentially enabling market abuse. This trend is particularly concerning on platforms like Kalshi and Polymarket. The regulator urges the industry to correct these habits, which could undermine trading integrity. Market participants must now adapt to stricter compliance standards to maintain trust.
The U.S. regulator of platforms such as Kalshi and Polymarket suggests the industry is getting into bad compliance habits that may allow for market abuse.