Prediction Markets Face Crackdown: Kalshi and Polymarket Introduce New Rules Amid Senate Scrutiny

AI Summary

Kalshi and Polymarket, two major prediction market platforms, have introduced new rules to prevent insider trading and address regulatory concerns. The move comes as US senators propose legislation to ban sports betting on online prediction markets.

The regulatory environment for prediction markets is becoming increasingly complex, with several states having already banned Kalshi and Polymarket. The Commodity Futures Trading Commission (CFTC), led by Michael Selig, has expressed support for the industry, arguing that federal law pre-empts state regulations.