Midterm endorsements and debates spark trading concerns

Prediction markets like Kalshi and Polymarket have experienced increased trading activity on events related to U.S. elections, including races, endorsements, and candidate withdrawals. While these platforms are legal, concerns have risen about potential insider trading, as some markets involve information only accessible to campaign insiders and close associates. Recent investigations and suspensions highlight risks of misuse, though companies assert they monitor and prevent illicit activities.

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