This will get regulated eventually. It’s incoherent to apply an entirely different regime to ‘prediction market bets’ than to financial markets, especially when plenty of eg Polymarket markets proxy the regulated securities market (betting on recessions, corporate performance/product, fed policy) as exchanges and others have raised.
There is, like Sloot said, a long history of libertarians and some other people arguing that insider trading should be legal to allow for better price discovery / for market efficiency, that it should be limited only contractually (eg. between employee and employer).
But people instinctually don’t like the idea of insider trading, and so it doesn’t seem coherent to allow it only on Polymarket. The most liquid prediction markets also have a relatively large amount of federally-mandated KYC now, so investigation can’t be substantially harder than for other insider trading.
I think it will happen. Maybe not soon, but eventually. That said, people do get away with insider trading most of the time. There were substantial moves in Israeli securities, in oil, in defense before October 7 for example, presumably because a lot of people knew and those people talked.
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This will get regulated eventually. It’s incoherent to apply an entirely different regime to ‘prediction market bets’ than to financial markets, especially when plenty of eg Polymarket markets proxy the regulated securities market (betting on recessions, corporate performance/product, fed policy) as exchanges and others have raised.
There is, like Sloot said, a long history of libertarians and some other people arguing that insider trading should be legal to allow for better price discovery / for market efficiency, that it should be limited only contractually (eg. between employee and employer).
But people instinctually don’t like the idea of insider trading, and so it doesn’t seem coherent to allow it only on Polymarket. The most liquid prediction markets also have a relatively large amount of federally-mandated KYC now, so investigation can’t be substantially harder than for other insider trading.
I think it will happen. Maybe not soon, but eventually. That said, people do get away with insider trading most of the time. There were substantial moves in Israeli securities, in oil, in defense before October 7 for example, presumably because a lot of people knew and those people talked.
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