00:00It's Benzinga, bringing Wall Street to Main Street.
00:02Prediction market watchdogs may struggle to police betting on U.S. midterm elections
00:06as thousands of races create new avenues for insider trading, according to Reuters.
00:12Kalshi suspended three congressional candidates in April for betting on their own races,
00:16and regulators are investigating whether former Congressman George Santos
00:20engaged in potential insider trading. Combined monthly global trading volumes on Kalshi and
00:26Polymarket surged nearly five-fold from September to reach about $24 billion in April.
00:31With at least 6,590 state and federal legislative seats up for election this year,
00:37the pool of potential insiders is vast. The CFTC, which oversees prediction markets,
00:42operates with enforcement staffing at its lowest level in at least 20 years,
00:46raising doubts about its capacity to police the space. For all things money, visit benzinga.com.
Comments