Wall Street Crackdown: Major Banks Ban Staff from Prediction Market Trading

The era of unregulated speculation is facing a massive institutional backlash. Leading Wall Street giants, including Goldman Sachs and Morgan Stanley, are tightening restrictions on employee access to prediction market platforms like Polymarket and Kalshi to prevent potential insider trading.

As event-based contracts gain mainstream traction, the risk of employees leveraging nonpublic information for financial gain has become a top priority for compliance departments. With Bank of America also drafting new prohibitive measures, the banking sector is moving aggressively to insulate itself from the regulatory scrutiny surrounding the rapid rise of prediction markets.

According to reports from CNBC, Goldman Sachs has reportedly banned employees from trading on contracts specific to the bank, including those involving financial markets, macroeconomic events, elections, and geopolitics. While Morgan Stanley maintains existing policies, a spokesperson for Bank of America indicated that the institution is currently developing new prohibitive measures to address the growing risks associated with prediction market trading.