Caixin has raised concerns about the legal implications for Chinese participants involved in Polymarket's USDC-based settlements. The article, titled "Financial Innovation or Insider Trading? The Rise and Controversy of Polymarket," questions whether the platform's operations blur the lines between financial innovation and gambling, or even insider trading. The use of USDC stablecoin for trade settlements on Polymarket is identified as a significant legal risk for users in China. This warning comes amid broader regulatory scrutiny, as U.S. Senators Merkley and Klobuchar have proposed the "End Prediction Market Corruption Act." This legislation aims to prevent high-ranking officials, including the President and Vice President, from engaging in prediction market trading, and mandates disclosure of such activities by their families.