Comment Comment by alephnerd > isn't the idea that prediction markets surface private knowledge a big part of the defense as to why they shouldn't be treated as illegal gamblingNo. Their defense is that they are a gamified platform for futures contracts and hence should fall under CFTC regulation.The CFTC also cracks down on insider trading, but it took time for them to write regulations to catch up with prediction markets.It is now a priority [0] and they have just started a paid whistleblower [1] programs specifically to catch insider traders within prediction markets.[0] - https://www.lw.com/en/insights/new-cftc-enforcement-director...[1] - https://www.whistleblower.gov/whistleblower-alerts/Insider_T... parent alephnerd 6 months ago
No. Their defense is that they are a gamified platform for futures contracts and hence should fall under CFTC regulation.
The CFTC also cracks down on insider trading, but it took time for them to write regulations to catch up with prediction markets.
It is now a priority [0] and they have just started a paid whistleblower [1] programs specifically to catch insider traders within prediction markets.
[0] - https://www.lw.com/en/insights/new-cftc-enforcement-director...
[1] - https://www.whistleblower.gov/whistleblower-alerts/Insider_T...