Polymarket Enhances Market Integrity Rules to Promote Transparency

Polymarket, a leading provider of decentralized finance (DeFi) platforms and regulated exchanges, has unveiled enhanced market integrity rules for its DeFi platform and CFTC-regulated US exchange. The new policies sharpen bans on insider trading, manipulation, and abusive tactics, backed by multi-layered surveillance and public reporting channels.

The updated framework centers on three explicit categories of banned insider conduct: trading on stolen confidential information, trading on illegal tips, and trading by people who can influence the underlying event's outcome. Participants are barred from using confidential information obtained in breach of a duty of trust, from acting on tips they know or should know are tainted, and from taking positions when they hold 'a position of authority or influence sufficient to affect the outcome of the underlying event.'

The move comes as regulated prediction markets scale rapidly under US CFTC oversight and institutional interest in crypto-linked event trading surges. Polymarket's Chief Legal Officer Neal Kumar stated that the rule enhancements make their expectations abundantly clear for every participant across both platforms, highlighting the compliance infrastructure already built.