Congress and states scrutinize prediction markets after insider trading reports
Business
Prediction markets, where people bet on real-world events, are facing heat after reports of insider trading.
Things blew up when an army special operations soldier placed bets on before the capture of former Venezuelan leader Nicolas Maduro and politicians wagered on their own elections.
Now, Congress and states are debating whether these platforms are just gambling in disguise, which could mean new rules or even bans.
Polymarket faced temporary bans
Big names like Polymarket (crypto-based, mostly unregulated) have faced temporary bans, while Kalshi (U.S.-based) follows stricter rules like ID checks and bans on insider trading.
With states and Congress calling for tighter controls, the future of prediction markets is up in the air,