Casey Newton

It's a bop, yeah.

Yeah.

I mean, it speaks to the reason why we have insider trading laws for stock markets.

It's not just because when you insider trade, you are like depriving someone else of money.

It just makes the whole market less fair and it destroys the trust in the market that makes it possible for it to be liquid and

And transparent.

Yeah.

So I think these these insider trading scandals just show like right now we are sort of at a pre regulatory Wild West moment for these prediction markets.

I imagine that will change at some point because they don't seem like they're going away.

And we just kind of need someone to step in and like say, OK, we're going to establish some rules so that we can protect the integrity of these markets.

I mean, I think there's a couple systemic issues here.

One is that the CFTC is just quite small.

The CFTC relative to the SEC, which regulates the stock market, is just like a tiny fraction of the enforcement team.

It was not really meant to regulate prediction markets.

It kind of ended up there sort of via this historical accident where like Kalshi was doing these things that were technically considered futures contracts, which brought them under the jurisdiction of the CFTC.

I think there's a real argument to be made to like as this stuff gets more widespread, it should move toward something like the SEC, which just has a lot more resources to investigate insider trading.

Right.

Can Supreme Court justices bet on the outcome of Supreme Court cases?

You know what?

Very good at that sort of thing.