The U.S. Commodity Futures Trading Commission (CFTC) stated on February 25 that it has "full enforcement authority" over illegal trading in prediction markets. This follows prediction market platform Kalshi's report of two insider trading incidents to the CFTC, resulting in the freezing of related traders' accounts. Concerns surrounding insider trading in prediction markets have been rising recently. A senior Justice Department official this month designated prediction markets as an area suitable for enforcement, and state gambling regulators are also seeking to regulate such markets. The CFTC's statement last week in a court filing that it has exclusive jurisdiction over prediction markets further exacerbated the jurisdictional dispute with the states. Under current regulations, companies registered with the CFTC (such as Kalshi) are typically obligated to assist in monitoring violations within their markets and report them to the agency. (Reuters)