As prediction markets explode in popularity, the regulator that polices them has been shrinking
The Commodity Futures Trading Commission (CFTC), the regulator of prediction markets, has shrunk by 24% since President Donald Trump returned to office, raising concerns about its ability to police insider trading. The CFTC has recently taken action against a US special forces soldier accused of profiting from betting on a Venezuelan leader capture operation.
The Commodity Futures Trading Commission (CFTC) workforce has dropped by 24% since President Donald Trump returned to office. Lawmakers and former officials have sounded the alarm over the agency's ability to police insider trading and protect consumers in the booming prediction markets industry. The CFTC recently arrested a US special forces soldier involved in a Venezuelan leader capture operation, who allegedly profited over $400,000 by betting on the raid. The agency is also investigating suspicious oil futures trades made before Trump announced major policy changes regarding Iran. The CFTC chair, Michael Selig, claims the agency is filling vacancies and using artificial intelligence to streamline work, but experts warn that deep staffing cuts could hobble the agency.
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