JPMorgan Reviews Staff Rules on Prediction Markets Amid Insider Trading Concerns

• The bank is considering implementing policies on how staff interact with prediction markets
• It’s not clear if the consideration is prompted by insider trading concerns or if outright bans will be unveiled
• The bank isn’t considering a prediction markets entry of its own in the near future

JPMorgan Chase (NYSE: JPM), the largest domestic bank, is rumored to be mulling over prediction markets guidelines for its staff.

Barron’s broke the news earlier Monday, citing unidentified sources with knowledge of the matter. The report indicates the New York-based bank is “reviewing company policies to determine whether it should add new guidance around employees’ participation in” prediction markets.

It did not say whether the bank is evaluating an all-out ban on staffers trading on platforms such as Kalshi and Polymarket or if they’d be allowed to participate in yes/no exchanges provided they disclose that activity.

JPMorgan has 320,000 employees, and not all are privy to information that could be leveraged for prediction market profits. For example, a bank teller is unlikely to come into contact with information suitable to trade on, but an investment banker is highly likely to have access to data and information that’s yet to be made public.

JPMorgan Prediction Market Policy Is Relevant

While prediction markets have gained traction with retail bettors and traders due to expansive offerings of political and sports event contracts, JPMorgan’s internal treatment of employee engagement with these platforms is pertinent for other reasons.

News of JPMorgan potentially cracking down on employee use of prediction markets arrives as both the industry and some politicians are attempting to do the same as it relates to insider trading.

There’s widespread belief that a staffer at Google parent Alphabet (NASDAQ: GOOGL) traded on nonpublic information pertaining to the Gemini 3 launch for gains on Polymarket. There’s also speculation that DraftKings (NASDAQ: DKNG) did something similar regarding event contracts linked to its entry into the prediction markets space.

Currently, there are no federal laws governing insider trading on prediction markets, as there are with traditional securities markets such as equities and fixed income.

JPMorgan Taking a Pass on Prediction Markets for Now

The prediction markets industry has lured traditional exchange operators and old-guard and next-generation brokerage houses. Likewise, some big banks have signaled interest in the space, but JPMorgan is standing down for now.

“JPMorgan’s plans around prediction markets could change if regulators offer greater clarity on how they plan to supervise prediction markets, particularly those where a security is involved,” reports Barron’s, citing the unidentified sources.