Overview
- Polymarket released enhanced integrity standards that now govern both its DeFi platform and its CFTC‑regulated U.S. exchange, updating the DeFi Terms of Use and the U.S. rulebook.
- The framework defines three insider‑trading bans: using stolen confidential information, trading on illegal tips, and trading by individuals able to influence an event’s outcome.
- The policy broadens manipulation prohibitions to include spoofing, wash trading, fictitious transactions, front‑running, self‑dealing, information misuse, and attempted manipulation.
- Enforcement differs by venue, with on‑chain review and third‑party surveillance on Polygon for DeFi, and a real‑time control desk, external surveillance partners, and an NFA Regulatory Services Agreement on the U.S. exchange; sanctions can include suspensions, terminations, fines, or referrals to authorities.
- New reporting channels invite DeFi users to flag issues via Discord or email and allow U.S. exchange participants to submit confidential complaints, reflecting heightened scrutiny, record trading growth, and the CFTC’s active role in event‑derivatives oversight.