{"id":19298,"date":"2026-02-06T08:45:45","date_gmt":"2026-02-06T08:45:45","guid":{"rendered":"https:\/\/microvibenews.com\/?p=19298"},"modified":"2026-02-06T08:45:45","modified_gmt":"2026-02-06T08:45:45","slug":"wall-streets-top-cop-expects-enforcement-on-prediction-markets","status":"publish","type":"post","link":"https:\/\/microvibenews.com\/?p=19298","title":{"rendered":"Wall Street\u2019s top cop expects enforcement on prediction markets"},"content":{"rendered":"<p><\/p>\n<div id=\"textFreeArticle\">\n<p>Wall Street\u2019s top cop expects regulators to take actions tied to prediction markets following a surge in trading on the platforms over the past year, saying that simply making bets outside of traditional spaces \u201cdoesn\u2019t insulate you from fraud.\u201d<\/p>\n<p>Manhattan US Attorney Jay Clayton made the comments Thursday during a speech at the Securities Enforcement Forum in New York, telling the audience that prediction markets are \u201can area that I am looking at.\u201d<\/p>\n<p>\u201cWhat is the applicable law? Let\u2019s say I have a big stock position,\u201d Clayton said. \u201cThe stock\u2019s trading at $130, there\u2019s a prediction market that pays if the stock goes below $100. Is that an out of the money put option? It sure looks like it. Right? You wouldn\u2019t advise someone to sell that as a non-security.\u201d<\/p>\n<div class=\"visible-sm-block visible-xs-block m1010\">\n<div class=\"ad-container-wrapper\">\n<p>ADVERTISEMENT<\/p>\n<p>CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n<p>Later in the forum, he was asked if he expected enforcement actions tied to the markets. \u201cYes,\u201d he responded bluntly.<\/p>\n<p>Clayton\u2019s remarks come as prediction markets have exploded into a multi-billion dollar industry, with users placing yes-or-no wagers on everything from Oscar winners to how much snow will fall. Trading on federally-regulated exchanges like Kalshi and the US arm of Polymarket has surged despite legal challenges from multiple state gaming regulators.<\/p>\n<p>Concerns about insider trading are also ramping up. The markets for some wagers are often thin enough that a single trader can move prices, especially if they have non-public information. Those worries escalated in January when a trader on Polymarket made approximately $400 000 betting on the ouster of former Venezuelan leader Nicol\u00e1s Maduro, with the biggest trades placed just before President Donald Trump publicly announced the US had captured him.<\/p>\n<p>The head of the US Commodity Futures Trading Commission, which regulates derivatives exchanges, last month said the agency would craft new rules on prediction markets.<\/p>\n<p>\u00a9 2026 Bloomberg<\/p>\n<p><em>Follow Moneyweb\u2019s in-depth finance and business news on WhatsApp here.<\/em><\/p>\n<\/p><\/div>\n<p><script data-cfasync=\"false\">\n            !function(f,b,e,v,n,t,s)\n            {if(f.fbq)return;n=f.fbq=function(){n.callMethod?\n                n.callMethod.apply(n,arguments):n.queue.push(arguments)};\n                if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';\n                n.queue=[];t=b.createElement(e);t.async=!0;\n                t.src=v;s=b.getElementsByTagName(e)[0];\n                s.parentNode.insertBefore(t,s)}(window, document,'script',\n                'https:\/\/connect.facebook.net\/en_US\/fbevents.js');\n            fbq('init', '779812924991616');\n            fbq('track', 'PageView');\n        <\/script>#Wall #Streets #top #cop #expects #enforcement #prediction #markets<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Wall Street\u2019s top cop expects &hellip; <\/p>\n","protected":false},"author":1,"featured_media":19299,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[4],"tags":[12005,5963,2666,166,893,5136,187,890],"_links":{"self":[{"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/posts\/19298"}],"collection":[{"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19298"}],"version-history":[{"count":0,"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/posts\/19298\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/media\/19299"}],"wp:attachment":[{"href":"https:\/\/microvibenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19298"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19298"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19298"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}