CFTC: Prediction markets are also subject to insider trading regulations; using material non-public information will be considered illegal.

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Mars Finance news: On April 1, David I. Miller, the enforcement chief of the U.S. Commodity Futures Trading Commission (CFTC), said that future enforcement will focus on five key areas, including insider trading, market manipulation, market abuse, retail fraud, and violations related to anti-money laundering and KYC. The CFTC made it clear that prediction markets are also subject to insider-trading regulation; trading using material nonpublic information will be treated as an illegal act and will be subject to “active investigation and prosecution.” In terms of regulatory direction, the CFTC emphasized it will end the model of “enforcement in place of regulation” and shift to focusing on core unlawful acts such as fraud and manipulation. It also plans to roll out new cooperation policies, offering pathways to reduced penalties or even exemptions for institutions that proactively conduct self-examinations, cooperate with investigations, and complete remediation. In addition, the CFTC said it will strengthen coordination with trading platforms and judicial authorities, with a focus on cracking down on energy market manipulation and fraud carried out using new technologies such as AI.

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