Insider Trading Allegations Rock Polymarket
Israeli authorities have arrested a military reservist and a civilian on suspicion of using classified information to place bets on Polymarket regarding military operations. According to reports, the suspects allegedly utilized insider knowledge concerning Israel's June 2025 attack on Iran to profit from prediction market wagers.
As detailed by Decrypt, the investigation highlights the growing scrutiny on how decentralized prediction markets interact with national security and non-public information.
SEC Claims Jurisdiction as CFTC Reshuffles
The regulatory perimeter around prediction markets is tightening in the United States. SEC Chair Paul Atkins stated yesterday that the agency already possesses "enough authority" to regulate at least a portion of the prediction market sector, signaling potential enforcement actions ahead.
Simultaneously, the CFTC is restructuring its approach under new chief Mike Selig. The agency has repurposed its innovation council, adding industry heavyweights like Coinbase's Brian Armstrong and Ripple's Brad Garlinghouse to its advisory group, as lawmakers weigh how new rules should govern digital-asset markets.
Kalshi Expands Hedging; New Tools Emerge
Amidst these regulatory battles, regulated exchange Kalshi is moving deeper into the sports sector. The platform has struck a deal with Game Point Capital to tap into the sports insurance market, allowing for institutional hedging strategies.
Innovation continues on the retail side as well. Prediction market aggregator Stand has launched a new counter-trading tool, designed to help traders bet against prevailing market sentiment. Investors tracking these developments on predictionmarketstools.com are also watching Bitcoin markets closely, where prices have bounced to $69K despite bearish chart signals.