Polymarket Updates Market Integrity Rules, Explicitly Prohibiting Three Insider Trading Behaviors

March 23 — Polymarket announced today it has updated market integrity rules for its U.S. exchange’s DeFi platform, which is regulated by the Commodity Futures Trading Commission (CFTC). The updated rules are now incorporated into the DeFi platform’s Terms of Use and Polymarket’s U.S. Rulebook. This move further strengthens the platform’s requirements against insider trading and market manipulation, while reaffirming its commitment to upholding market quality and protecting user rights. ### Key Insider Trading Prohibitions in the Updated Rules 1. **Trading on Stolen Confidential Information** Participants may not trade any contracts if they possess confidential information about an underlying event’s outcome (or potential outcome) and using that information would breach a pre-existing trust or confidentiality obligation to others or entities. 2. **Trading on Unlawfully Obtained Inside Information** Participants may not trade using confidential information provided by others if: - The provider owed a prior trust or confidentiality obligation to third parties; AND - The participant knew or had reason to know the provider would be prohibited from trading on that information themselves. 3. **Trading by Those Who Can Influence Event Outcomes** Participants may not trade any contracts if they have the authority or influence to affect the outcome of the underlying event.