CFTC Chairman Mike Selig discussed the boundaries of insider trading in prediction markets and event contracts during a March 9 interview. Selig emphasized that trading based on confidential information or misappropriating employer data is illegal. He cited examples such as a MrBeast employee using insider information for trading and stadium staff betting on Gatorade colors known in advance. Selig affirmed that the CFTC has enforcement powers similar to the SEC and will regulate such activities under the 'misappropriation theory.'
CFTC Chair Outlines Insider Trading Boundaries in Prediction Markets
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