Wall Street Bank Tightens Employee Insider Trading Restrictions to Prevent Market Manipulation

BlockBeats News, July 10th, as insider trading concerns in the prediction market escalate, multiple Wall Street banks are tightening their employees' trading permissions on prediction market platforms.

Reports indicate that Goldman Sachs has already prohibited employees from trading on contracts related to the bank itself, financial markets, macroeconomics, elections, and geopolitical events; Morgan Stanley has also established a new policy regarding employee prediction market trading; and Bank of America is launching new employee trading restrictions.

Prior to this, the U.S. Department of Justice and the Commodity Futures Trading Commission (CFTC) disclosed that a Google software engineer made approximately $1.2 million in profit on Polymarket by using non-public information obtained through work, further intensifying concerns about insider trading in the market.

Meanwhile, Polymarket is seeking to expand its U.S. business. Its affiliate, Coming Home GBA LLC, has applied to the National Futures Association (NFA) to become a Futures Commission Merchant (FCM), planning to offer margin prediction trading services to U.S. users in the future. However, this business still requires approval from the CFTC. Competitor Kalshi's affiliate obtained relevant qualifications in March of this year.

According to data, Polymarket set a record of $713 million in single-day trading volume on June 20th; Kalshi also reached nearly $9.4 billion in monthly trading volume in June, driven by the 2026 World Cup event, showing a continued surge in prediction market trading activity.