Under-regulated prediction markets have exposed America to needless public safety and national security risks by allowing traders to invest in outcomes related to sensitive matters like terrorism, assassination, war, or elections. Prediction markets also sponsor sports-related contracts against the wishes of many states, including Utah, that would otherwise prohibit these contracts if offered as traditional sports betting.
We're going to be setting very clear standards as to the types of prediction markets that can be self-certified in our markets. We're also planning to move forward with an advanced notice of proposed rulemaking in the near future that will set the stage for more fulsome rulemaking.
The Commission has full authority to police illegal trading practices occurring on any DCM, including those described above related to prediction markets. Kalshi used its own announcement to underscore that we ban insider trading and said it had launched about 200 investigations over the past year. More than a dozen of those inquiries led to formal enforcement actions.