Goldman Sachs, JPMorgan Chase, and others tighten rules on prediction market trading as concerns about insider trading intensify.

Odaily Planet Daily reports that Goldman Sachs has banned employees from trading prediction market contracts related to its own events, elections, financial markets, macroeconomic data, and geopolitics, amid concerns about insider trading. Morgan Stanley, JPMorgan Chase, and Bank of America are also developing or updating similar policies, with Bank of America already clarifying the prohibition on prediction market trading to its employees. Previously, the Commodity Futures Trading Commission (CFTC) and the Department of Justice accused a Google employee of using non-public information to trade "annual search" related contracts on Polymarket, profiting approximately $1.2 million. Legal experts say the CFTC still lacks mature cases in enforcing insider trading laws in prediction markets, and the wide variety of prediction market contracts also increases the difficulty of regulation. Currently, Kalshi and Polymarket have launched employment verification tools and are partnering with Chainalysis and Palantir to monitor suspicious trading activity. (CNBC)