Polymarket vows insider trading crackdown as traders bet $12M on CLARITY Act
Polymarket says it is strengthening systems to identify insider trading and suspicious activity. Traders have wagered $12 million on the CLARITY Act on the platform. The company announced new measures to crack down on misconduct. The betting volume on the crypto regulatory bill highlights the platform's growing role in political prediction markets.
Kalshi's rapid expulsion of politically connected traders has set a new surveillance speed that Polymarket must now match or risk becoming the soft regulatory target. The CFTC fined former White House teleprompter operator Perez $172,000, giving platforms a concrete template for self-policing.
Polymarket has a 100-plus law enforcement referral history but fewer public enforcement actions. If its midterm monitoring lags, regulators can treat it as the negligent venue in the next insider-trading case. The $12 million in CLARITY Act volume raises the stakes: high-profile legislation attracts staffers with advance knowledge.