Prediction Market Insider Trading Concerns Rise, Goldman Sachs, JPMorgan and Others Tighten Employee Trading Rules

CoinFeed reported on July 10, according to CNBC, as prediction markets raise insider trading concerns, Goldman Sachs has banned employees from trading contracts related to the bank's own events, elections, financial markets, macroeconomic data, and geopolitics. Financial institutions such as Morgan Stanley, JPMorgan, and Bank of America are formulating or updating relevant policies, with Bank of America explicitly prohibiting employees from prediction market trading. Previously, the CFTC and the Department of Justice accused a Google employee of using non-public information to trade 'Search of the Year' related contracts on Polymarket, profiting about $1.2 million. Legal experts say the CFTC is 'still a blank slate' in insider trading enforcement, but the wide variety of platform contracts makes comprehensive regulation difficult. Kalshi and Polymarket have respectively launched employment verification tools and partnered with Chainalysis and Palantir to monitor suspicious activity.