> Prediction markets can only do sports gambling (the vast majority of their volume) because they self-certify under the CFTC

Sports betting is still illegal in 11 states. They can only do what they’re doing because of legislation and enforcement lag.

> The CFTC doesn't have the same standards of "insider trading" as the stock market, because insider trading is the entire point of business at the CFTC!

True to some extent, but it’s still illegal to use non-public information gained from your firm to trade on personal accounts.