Caixin: Polymarket settling and delivery using USDC poses a significant legal risk for participants within China.

DeepFlowTech · 2026-04-10T02:54:24+00:00

The article discusses the rise and controversy of Polymarket, pointing out that it may involve insider trading and clarifying the legal risks of prediction markets. U.S. senators have proposed legislation to ban high-ranking officials and their families from participating in such trading, requiring financial transparency.

DeepFlowTech

2026-04-10 02:54:24

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Deep Tide TechFlow message. On April 10, Caixin.net published an article titled “Financial Innovation or Insider Trading? The Rise and Controversy of Polymarket.” It points out that when insider information can be cashed out openly, the boundary of the prediction market has already become blurred—whether this is “gambling” disguised with a financial coat, or even suspected insider trading. However, regardless of the outcome of legal arguments about whether it is gambling, the fact that Polymarket settles and delivers using the USDC stablecoin itself poses a major legal risk for participants in China.

Earlier, U.S. Senator Merkley and Klobuchar had already introduced the “End Prediction Market Corruption Act,” which would prohibit the President, the Vice President, and members of Congress from trading on prediction markets, and require that their spouses’ and dependent children’s prediction market trading be included in annual financial disclosures.

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