Polymarket is tightening the prohibition of insider trading and manipulation across its DeFi app and the CFTC-regulated US exchange, while adding monitoring and oversight of the NFA and official whistleblowing channels.
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- Polymarket is rolling out enhanced market integrity rules for both the DeFi platform and the CFTC-regulated US exchange.
- The new policies sharpen prohibitions on insider trading, manipulation, and abusive tactics, supported by multi-layered monitoring and public reporting channels.
- The move comes as regulated prediction markets are rapidly expanding under the oversight of the US Commodity Futures Trading Commission (CFTC) and institutional interest in rising cryptocurrency-related event trading.
Polymarket has published updated market integrity rules covering its DeFi platform and the CFTC-regulated US exchange, tightening bans on insider trading, fraud and market manipulation while formalizing suspicious activity reporting channels. “Markets thrive on clarity,” said Neil Kumar, Legal Director, Polymarket.
“These rule improvements make our expectations crystal clear to every participant across both platforms and highlight the compliance infrastructure we have already built.”
The updated framework focuses on three explicit categories of prohibited insider conduct: trading based on stolen confidential information, trading based on illegal advice, and trading by people who can influence the outcome of the underlying event. Participants are prohibited from using confidential information obtained in violation of the duty of confidence, from acting on information they know or should know to be tainted, and from taking positions when they hold “a position of sufficient power or influence to influence the outcome of the underlying event.” Beyond internal rules, PolyMarket is now highlighting a comprehensive ban on spoofing, fake trading, fictitious transactions, pre-exploitation, self-dealing, misuse of information, manipulation attempts, and other disruptive practices that undermine regulated markets.
At the US Stock Exchange, enforcement relies on a multi-layered oversight suite: partnerships with “global trade and technology monitoring specialists,” a oversight office that manages real-time monitoring, and a regulatory services agreement with the National Futures Association to investigate and punish rule violators. Penalties for violators can include suspension, termination, financial penalties, or referral to regulators and law enforcement. On the DeFi side, users can report suspected abuse via Polymarket’s Discord or via email (email protected)while US stock exchange participants can submit confidential complaints to (email protected).
The integrity renewal comes amid a broader regulatory shift in the United States, where the Commodity Futures Trading Commission (CFTC) has asserted its exclusive jurisdiction over predictive market derivatives and is actively working to determine how event contracts comply with the Commodity Exchange Act. Polymarket did obtain an amended CFTC order in late 2025, allowing intermediary access via futures traders and linking the platform to full designated futures market-style monitoring, reporting, and self-regulatory obligations. As one recent analysis put it, regulated platforms like Polymarket are “now betting on on-chain transparency and authenticity” while competing against DeFi-only venues that emphasize cost and self-custody.
Organizational ones Clarity It arrives just as prediction markets are recording record activity. In February 2026, the combined monthly volume on major platforms everything and Polymarket The value of shares traded reached nearly $18.6 billion, a new all-time high, with more than $8 billion changing hands in the first half of March alone. Industry observers argue that as event markets become an institutional-level information source for media outlets, sports leagues, and financial companies, exchanges able to demonstrate the credibility of monitoring and clear integrity rules will capture the most sensitive flow. “Our goal has always been to give fans new ways to engage with the sports they love while ensuring those markets grow responsibly on a global scale,” Polymarket founder Shane Coplan said in a previous statement about the company’s broader integrity campaign.
