Two recent Department of Justice prosecutions are challenging traditional notions of insider trading within prediction markets. The cases, which involve charges of commodities fraud and wire fraud, highlight a shift in legal interpretations. Legal expert Sam Enzer explains that these cases do not fit the typical insider trading mold, with the George Santos case aligning more closely with scalping theory. The discussion also touches on the ongoing conflict between the Commodity Futures Trading Commission (CFTC) and state gambling regulations, which may ultimately be resolved by the Supreme Court. Additionally, the interview explores scenarios where trading on an information edge remains legal and examines the implications for platforms like Kalshi and Polymarket, which face regulatory scrutiny over their operations.