Wall Street Cracks Down on Employee Trading
Wall Street heavyweights, including Goldman Sachs and Morgan Stanley, are officially restricting employee participation in prediction markets. According to Cointelegraph, the banks are limiting staff trades on platforms like Polymarket and Kalshi as fears of insider trading begin to spread across the financial sector.
Polymarket Pushes for Margin Trading Amid State Tax Wins
Despite Wall Street's hesitation, prediction platforms are actively pushing for product expansion and regulatory clarity. CoinDesk reports that Polymarket has filed an application to offer margin trading to U.S. customers. The move, which would allow users to take positions that are not fully collateralized, follows a similar authorization granted to rival Kalshi in March.
Meanwhile, at the state level, a newly passed North Carolina budget law has formally recognized the CFTC's federal regulatory authority over both Kalshi and Polymarket. The legislation establishes a favorable 6% tax rate on the platforms, which Decrypt notes is significantly lower than what other states are currently pursuing.
Legal Battles Heat Up in New York
Legal hurdles remain a persistent theme for the industry's top operators. Kalshi has filed a same-day appeal to the Second Circuit after a New York federal judge denied its bid to block state gambling officials from enforcing local laws against its sports event contracts, according to Cointelegraph.
Polymarket is facing its own localized legal battles. The Defiant reports that users William Wood and Thomas Bush have sued the platform, its holding entities, and CEO Shayne Coplan in the Supreme Court of the State of New York. The plaintiffs allege the site wrongly resolved a specific market regarding whether "Strategy" would sell Bitcoin. For traders tracking these rapid regulatory and platform shifts, utilizing reliable prediction market tools is essential to navigate the evolving landscape.