Odaily News Caixin.com published an article titled "Financial Innovation or Insider Trading? The Rise and Controversy of Polymarket." It points out that when insider information can be openly monetized, the boundaries of prediction markets have already blurred. Is this "gambling" cloaked in financial attire, or even suspected insider trading? However, regardless of the legal debate over whether it constitutes gambling, the fact that Polymarket uses the USDC stablecoin for settlement and delivery itself poses a significant legal risk for participants within mainland China. Previously, U.S. Senators Merkley and Klobuchar introduced the "End Prediction Market Corruption Act," which prohibits the President, Vice President, and members of Congress from trading on prediction markets and requires the prediction market trading activities of their spouses and dependent children to be included in annual financial disclosures.
