Thomas Peterffy, the billionaire founder and chairman of Interactive Brokers Group Inc., has an answer to the insider-trading concerns dogging prediction markets: stop trying to prevent it — for the good of society.

Commodity Futures Trading Commission chairman Michael Selig wants America to be the hub for prediction markets. He also wants the industry to know he is watching every trade.

Opinion: With the increased regulatory focus on prediction markets, companies should consider reviewing their existing policies and procedures to ensure that they address insider trading and the misuse of material nonpublic information.

Critics say traders appear to be getting confidential information about major news that will move markets, and then placing trades just before it happens, winning a big payoff. It’s sparking a wave of legislation in both houses of Congress.

Polymarket tightened its rules after questions surfaced over whether some prediction market customers engaged in insider trading.

More than 40 Democratic lawmakers are pressing the Trump administration to provide guidance underscoring that federal employees cannot use nonpublic information to trade on prediction markets. Led by Sen.

For example, some traders said the ceasefire between the U.S. and Iran is actually a "temporary tactical stand-down," which wouldn't qualify under Polymarket's rules. Others say that the Iranian foreign minister's statement that Iran will halt “defensive operations” doesn't rule out offensive actions.

Richard Evans had passed on sensitive information to a fund manager in 2017, as the now-defunct online video company’s share price began to soar.