Litigation & enforcement partners Lisa Bebchick, Amy Jane Longo, counsel Devon Caton, and associate Ashley Stamegna authored a new article in Bloomberg Law, examining the compliance risks that prediction markets pose for companies and their employees who may have access to material nonpublic information (MNPI).
In the article, the authors highlight the rapid expansion of prediction market platforms such as Polymarket and Kalshi, noting that employees who trade on MNPI in these markets could face civil or criminal liability for insider trading from the CFTC, SEC, or DOJ. They observe that some platforms have already begun to self-police MNPI misuse and urge companies to "stay apprised of enforcement trends in this area and consider steps to reinforce existing policies and procedures to guard against insider trading and misuse of MNPI," including reviewing training programs and surveillance tools.
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