Polymarket has announced an updated Market Integrity Policy, applicable to both its DeFi platform and its U.S. exchange regulated by the CFTC. The new rules, effective March 23, 2026, prohibit insider trading based on stolen or illegal information and trading by individuals influencing outcomes. The policy also targets market manipulation tactics such as spoofing and wash trading. This move comes as Polymarket faces increased regulatory pressure following controversies involving insider trading allegations. Notably, trades linked to political events in Venezuela and military actions in Iran raised concerns about market integrity. In response, Polymarket has implemented a multi-layered monitoring framework, collaborating with technology firms and regulatory bodies to detect and address suspicious activities. The updated regulations aim to enhance market transparency and integrity, potentially impacting arbitrage users and liquidity providers. While some market participants view these changes as a sign of maturation, others may face challenges adapting to the stricter compliance environment. Polymarket's strategic shift towards regulatory alignment underscores its commitment to maintaining a robust and transparent trading platform.