Akin Attorneys Author Bloomberg Law Article Examining Limits on Prediction Market Prosecutions

Bloomberg Law has published an article titled, “Prediction Market Prosecutions May Be Curbed by Decades‑Old Case,” co-authored by Akin white collar defense & government investigations co-head Katherine Goldstein, senior counsel Jack Murphy and litigation law clerk Will Bernstein. The article examines how federal prosecutors may pursue insider trading cases involving prediction markets and the legal obstacles those efforts may face. 

The authors explain that while the Commodity Exchange Act provides a framework for insider trading enforcement, prosecutors may instead rely on wire fraud theories tied to violations of prediction markets’ user agreements.  

“Prediction markets may want to evaluate their terms of use to assess whether they appropriately deter trading on the platform deemed to be unlawful. And users should recognize that regulators are paying careful attention to their trades.” 

To read the full piece, click here.