CFTC: Insider trading is also subject to regulation in prediction markets; using undisclosed material information will be considered illegal.

According to Mars Finance, on April 1st, David I. Miller, the enforcement director of the U.S. Commodity Futures Trading Commission (CFTC), stated that future enforcement will focus on five key areas: insider trading, market manipulation, market abuse, retail fraud, and anti-money laundering and KYC violations. The CFTC explicitly stated that insider trading regulations also apply to prediction markets; trading using undisclosed material information will be considered illegal and will be "actively investigated and prosecuted." Regarding regulatory direction, the CFTC emphasized ending the "enforcement as a substitute for regulation" model and shifting its focus to core illegal activities such as fraud and manipulation. It also plans to introduce new cooperation policies, providing lenient treatment or even exemptions to institutions that proactively conduct self-examinations, cooperate with investigations, and complete rectification. Furthermore, the CFTC stated it will strengthen cooperation with trading platforms and judicial institutions, focusing on combating energy market manipulation and fraud using new technologies such as AI.