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U.S. Begins Investigating Polymarket, a Test of a Key Regulator
The New York Times • • business
Key Points:
- The Commodity Futures Trading Commission (CFTC) has launched a new investigation into Polymarket, a prediction market company linked to Donald Trump Jr., to determine if it is operating legally.
- This inquiry marks a shift from a previous investigation into Polymarket that was closed a year ago despite opposition from CFTC enforcement attorneys.
- The investigation, which began earlier this year and is described as extensive, remains largely confidential with few public details available.
- CFTC Chairman Michael S. Selig, appointed in December, faces pressure from lawmakers to regulate the rapidly growing prediction market industry and address concerns about insider trading and market abuses.
- While the CFTC has vowed to crack down on abuses, so far only individual traders—not platforms like Polymarket—have been charged with wrongdoing.
