Comment The grift is now right out in the open (Score 5, Informative) 52
Congress "did not intend" to legalize straight-up gambling nationwide through what amounts to a semantic loophole. There is absolutely no doubt about that, on any side of this discussion (including the CFTC).
It's funny - Online discussions among (real) investors often worry about, and frequently caution each other about insider trading. The reality is, insider trading isn't applicable to the vast majority of us. Unless you're a C-level employee, specifically working in M&A, or maybe as the lead on a truly revolutionary new product (no, your company's Facebook wannabe or thinly disguised open source ripoff ain't it) - You have no insider information to trade on. Sincere belief that your employer's cool new toys are going to change the world ain't it - every company has cool new toys in the pipeline, and most of them are going to flop or at best be just another branded widget.
Thanks to Kalshi and Polymarket, congrats, every single one of us can now have truly actionable insider information. And that's not good, because as the past year has shown repeatedly, the average Joe is more than willing to use that information and has zero comprehension of securities regulations.
And to be clear, I have no substantial objection to gambling. This sham is something else entirely, however, and that something is a naked power grab.
It's funny - Online discussions among (real) investors often worry about, and frequently caution each other about insider trading. The reality is, insider trading isn't applicable to the vast majority of us. Unless you're a C-level employee, specifically working in M&A, or maybe as the lead on a truly revolutionary new product (no, your company's Facebook wannabe or thinly disguised open source ripoff ain't it) - You have no insider information to trade on. Sincere belief that your employer's cool new toys are going to change the world ain't it - every company has cool new toys in the pipeline, and most of them are going to flop or at best be just another branded widget.
Thanks to Kalshi and Polymarket, congrats, every single one of us can now have truly actionable insider information. And that's not good, because as the past year has shown repeatedly, the average Joe is more than willing to use that information and has zero comprehension of securities regulations.
And to be clear, I have no substantial objection to gambling. This sham is something else entirely, however, and that something is a naked power grab.