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Wall Street banks are restricting employees’ trading on prediction market platforms over concerns they may use non-public information to trade event contracts.
Goldman Sachs has reportedly banned its employees from trading futures on the bank’s events, including financial markets, macroeconomic events, elections and geopolitics, CNBC I mentionedciting people familiar with the matter.
Anonymous sources from Morgan Stanley also told CNBC that the bank has policies regarding forecasting market trading by employees, while a Bank of America spokesperson said the bank is in the process of issuing new employee prohibitions on forecasting market trading.
The report adds to insider trading concerns regarding prediction markets, which have attracted the attention of the White House and US lawmakers, who… Proposed legislation aimed at restricting Political prediction market trading by government officials.
Cointelegraph reached out to Goldman Sachs to ask about the reasoning behind the precautionary policies. A bank spokesman declined to comment.
In May, the US Department of Justice and the Commodity Futures Trading Commission (CFTC) said that Google software engineer Michele Spagnuolo She won $1.2 million On Polymarket after accessing non-public information at work.
On June 18, Wisconsin State Representative Brian Steele introduced legislation to Specific general ban Of “betting on public policy issues and political outcomes,” but they did not mention any White House official by name.
One major point of tension arose in January, when Pfc He made more than $400,000 Betting on the overthrow of Venezuelan President Nicolas Maduro, who was overthrown and arrested by American forces.
Related to: Suspected Insider Wallets Raised $1.2 Million Betting on ZachXBT’s Axiom Offering
Polymarket is seeking a broader US reach
Meanwhile, Polymarket is seeking regulatory approval to offer margin trading to US users, which will enable them to bet on events with less capital up front.
Prediction Market has applied to become a futures commission dealer through its subsidiary, Coming Home GBA LLC, it said on July 3. Deposit With the National Futures Association (NFA).
The filing represents Polymarket’s latest attempt to expand its presence in the US and attract more users. Cointelegraph has reached out to Polymarket for comment on this matter. The platform also needs a permit from the Commodity Futures Trading Commission (CFTC) to allow fully collateralized trading for users.
Polymarket’s main competitor has already received US regulatory approval to offer margin trading, after its subsidiary, Kinetic Markets LLC, obtained an NFA. permission In March.
Coming Home GBA LLC, filing. source: nfa.futures.org
Polymarket reached a record $713 million in daily buying volume on June 20, according to Dune Data. This achievement came more than a week after The World Cup has begun Off on June 11th.
He also published Kalshi Record monthly trading volume reached nearly $9.4 billion in June, as the 2026 FIFA World Cup boosted activity across prediction markets.
magazine: The prediction market battle is approaching the Supreme Court
