Mike Selig, Chairman of the U.S. Commodity Futures Trading Commission (CFTC), has announced that the agency is closely monitoring prediction markets for signs of manipulation ahead of the U.S. midterm elections in November.
Selig warned that violators will be held accountable under applicable laws and regulations, emphasizing that the agency will not tolerate any attempts to manipulate these markets.
His remarks come as prediction markets such as Polymarket and Kalshi experience significant growth in trading volume, with investors using them to bet on election outcomes and political events. These markets have raised regulatory concerns about potential manipulation or the use of insider information to influence prices.
Analysts view the CFTC's warning as a sign of heightened regulatory scrutiny over this fast-growing sector, especially as the elections approach, when prediction markets become an important tool for gauging public sentiment and political trends.