Insider‑trading concerns have pushed firms like Goldman Sachs to ban employees from betting on contracts tied to the bank, elections, macro data or geopolitics. The policy follows a high‑profile case where a former Google employee earned $1.2 million by trading on Polymarket contracts that reflected Alphabet’s internal data.

The Commodity Futures Trading Commission and the Department of Justice charged the employee, who used the handle “Alpha Raccoon,” for exploiting material non‑public information. The case signals that regulators view prediction markets as a new vector for insider activity.

Only a handful of companies have formal policies. A CNBC survey found ten firms with rules; three had explicit guidelines, two were drafting them, and the rest had not replied. Banks lead the effort, citing large compliance teams, but many private and public firms remain in the early stages of policy development.

Platforms are also stepping up. Kalshi rolled out employment verification and partnered with Star Compliance and Solidus Labs, while Polymarket teamed with Chainalysis and Palantir to flag suspicious trades. Firms now face pressure to educate staff and define clear boundaries on prediction‑market participation.