"Gambling on the weather has become an institution throughout a great part of the United States." This sentiment from the Fort Worth Star-Telegram in 1915 highlights the long-standing tradition of weather betting in American culture.
The guardrails we built use state-of-the-art technology and screening lists, but no screening system is perfect, and motivated bad actors consistently try to find a way.
America's financial markets are the envy of the world because they scale and adapt to meet investor demands. Like our markets, the CFTC's and SEC's regulatory frameworks must also evolve and modernize to accommodate the needs of our market participants.
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.