Polymarket Announces Enhanced Market Integrity Rules
Polymarket, a leading prediction market platform, announced enhanced market integrity rules on March 23, 2026, applying to both its decentralized finance platform on the Polygon network and its U.S. exchange regulated by the Commodity Futures Trading Commission. The updates aim to prevent insider trading and market manipulation, addressing concerns raised by rapid growth and past scrutiny.
The revised policies, detailed in the platform's Terms of Use and U.S. Rulebook, define three categories of prohibited insider trading. Users cannot trade based on stolen or confidential information directly linked to an event's outcome. Trading on tips obtained through illegal channels is also banned if the trader knows the information's improper source. Additionally, individuals with authority or influence over an event, such as those involved in its organization, are restricted from trading related contracts. These measures apply uniformly across both platforms to ensure fairness for all participants.
The rules extend bans to various manipulative practices, including spoofing, wash trading, frontrunning, fictitious transactions, and self-dealing. They also prohibit information misuse,...