CFTC enforcement chief David Miller has warned traders in prediction markets that insider trading rules will be enforced. Event contracts are considered swaps under financial market laws. Regulators are monitoring suspicious activity and focusing on cases involving misuse of confidential information. Concerns have been raised about privileged information being used in prediction markets. Regulations are being updated to prevent insider-driven trades. Multiple legislative efforts are underway to restrict the use of non-public information in prediction markets.

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