CFTC Brings Prediction Markets Under Insider-Trading Enforcement

According to Huo Xing Finance, U.S. Commodity Futures Trading Commission (CFTC) Enforcement Director David I. Miller said on April 1 that the agency's enforcement agenda will prioritize five areas: insider trading, market manipulation, market abuse, retail fraud, and breaches of anti-money laundering and KYC rules. The CFTC said prediction markets fall within its insider-trading remit, warning that trades based on material nonpublic information will be deemed illegal and "actively investigated and prosecuted." Miller said the CFTC aims to shift away from an "enforcement as regulation" approach and concentrate on core misconduct such as fraud and manipulation. The agency also plans to roll out a new cooperation policy that could reduce penalties or provide exemption pathways for institutions that voluntarily self-report, assist investigations, and complete remediation. The CFTC added it will deepen coordination with trading venues and judicial authorities to tackle manipulation in energy markets and fraud enabled by emerging technologies, including AI.