Allow insiders to trade

Predictive market platform Polymarket received approval from the U.S. Commodity Futures Trading Commission (CFTC) after being raided by the Federal Bureau of Investigation (FBI) ten months ago to allow U.S. residents to bet on various events, including corporate earnings. The platform is currently valued at $9 billion. Proponents believe that if insiders are allowed to participate, forecasting markets can improve information dissemination and provide real-time insights into company performance. However, while the CFTC rules are looser than the SEC’s regulations, current U.S. law may prohibit such markets from insider trading. The focus of the debate is whether insider participation will improve market equity and information quality.