The U.S. Commodity Futures Trading Commission (CFTC) has suggested that prediction markets, such as Kalshi and Polymarket, need to dial back on faulty filings for incentives to boost trading. This is based on reporting from CoinDesk.
The regulator's concern is that the industry is getting into bad compliance habits that may allow for market abuse. By improving compliance habits, prediction markets can potentially prevent such abuses and create a healthier trading environment.