Polymarket Publishes Enhanced Market Integrity Rules Across Its DeFi Platform and CFTC-Regulated U.S. Exchange

Updated governing documents and new market integrity pages highlight multi-layered enforcement frameworks across both platforms

NEW YORK--(BUSINESS WIRE)--Polymarket, the world’s largest prediction market, today announced updated market integrity rules across both its DeFi platform and its CFTC-regulated U.S. exchange. The rules, which appear in the DeFi platform’s Terms of Use and the Polymarket US Rulebook, amplify Polymarket’s requirements governing insider trading and market manipulation and reinforce Polymarket’s commitment to maintaining the quality of its markets and protecting its users.

"Markets thrive on clarity," said Neal Kumar, Chief Legal Officer of Polymarket. "These rule enhancements make our expectations abundantly clear for every participant across both platforms and highlight the compliance infrastructure we have already built. As Polymarket continues to scale, we will build on our foundation with clear communication to Polymarket’s users to ensure our markets do what they do best — surface truth."

The updated rules clarify three core categories of prohibited insider trading conduct:

• Trading on stolen confidential information — participants may not trade on any contract if they possess confidential information about the outcome or likely outcome of the underlying event, where using that information would violate a preexisting duty or obligation of trust or confidence owed to another person or entity.
• Trading on illegal tips — participants may not trade on confidential information passed to them by someone who owed a preexisting duty of trust or confidence to someone else, if they know or have reason to know that the person who shared the information would be prohibited from trading on it themselves.
• Trading by those who can influence the outcome — participants may not trade on any contract if they hold a position of authority or influence sufficient to affect the outcome of the underlying event.

Polymarket simultaneously launched dedicated Market Integrity pages, which clarify how these rules work in practice and provide resources for users to report suspicious activity across both platforms.

Beyond insider trading, both platforms prohibit all types of fraud and market manipulation — including spoofing, wash trading, and fictitious transactions — as well as self-dealing, front-running, information misuse, attempted manipulation, and disruptive practices that undermine the orderly operation of markets.

Multi-Layered Surveillance and Enforcement

On the DeFi platform, Polymarket maintains a multi-layered monitoring system and partners with world-class surveillance and technology specialists to ensure the integrity of its markets. The platform’s architecture — with all trades executed on the Polygon blockchain — provides built-in transparency: trading activity is publicly viewable on-chain, and all holders in each contract are easily viewable on polymarket.com. When Polymarket or the community identifies unusual or potentially questionable trading activity, Polymarket may initiate a review and pursue disciplinary action, including banning wallet addresses and referring the user and matter to law enforcement.

On Polymarket US, surveillance operates at three levels: partnerships with world-class trade surveillance and technology specialists; a control desk conducting real-time surveillance to identify unusual or disruptive trading activity; and a Regulatory Services Agreement with the National Futures Association (NFA) to conduct trade practice surveillance, detect potential rule violations, and investigate and sanction persons who violate exchange rules. If a participant is found to have violated Polymarket US’s rules or applicable law, sanctions may include suspension, termination, monetary penalties, or referral to regulatory or law enforcement authorities.

Public Reporting Channels

Both platforms provide dedicated channels for reporting suspicious activity. DeFi platform users report potential violations through the Polymarket Discord or to [e-mail]. Polymarket US participants can submit confidential reports to [e-mail].

The DeFi and US Market Integrity pages are now available online, in addition to the updated Polymarket.com Terms of Use and the Polymarket US Rulebook.

About Polymarket

Polymarket is the world's largest prediction market. On Polymarket, traders predict the outcome of future events and win when they are right. As traders react to breaking news in real-time, market prices are the best gauge of the likelihood of events occurring. Institutions, individuals, and the media rely on these forecasts to report the news and better understand the future. Across politics, current events, pop culture, and more, billions of dollars of predictions have been made to date.