Gate News message, April 10, Caixin published an article titled “Financial Innovation or Insider Trading: The Rise and Controversy of Polymarket,” which states that the legal boundaries of Polymarket’s prediction markets are ambiguous, and that controversy arises over whether it constitutes gambling or insider trading when insider information can be monetized. The article emphasizes that, regardless of how the legal debate over whether it is gambling is ultimately resolved, the fact that Polymarket uses USDC stablecoin for settlement and delivery is, by itself, a major legal risk for participants within China. In addition, recently U.S. Senators Merkley and Klobuchar have already introduced the “End Prediction Market Corruption Act,” which would prohibit the president, vice president, and members of Congress from trading on prediction markets, and require the prediction market trading activities of their spouses and dependent children to be included in annual financial disclosures.
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