Goldman Sachs has reportedly banned its employees from trading certain prediction market contracts, according to a CNBC report on July 10. The investment bank prohibited staff from trading contracts related to elections, financial markets, macroeconomic data, and geopolitics, as well as events specific to Goldman Sachs itself. The move comes amid growing concerns over insider trading in prediction markets, following a recent case where a Google employee was charged with using insider information to profit nearly $1.2 million on Polymarket. Prediction markets have experienced explosive growth, with combined monthly trading volume on platforms Polymarket and Kalshi rising from less than $5 billion in September 2025 to about $24 billion in April 2026, according to Pew Research Center. The rapid expansion of these markets has raised questions about how corporations and financial institutions should regulate employee participation to prevent misuse of privileged information.
Prediction Market Growth Triggers Insider Trading Concerns
Prediction markets have emerged as a booming sector, with platforms like Polymarket and Kalshi gaining increasing popularity among traders. Polymarket, a crypto-based prediction market, holds the top position in the industry. The platform integrates crypto payments by letting users pay with Circle's USDC stablecoin to predict events like future Bitcoin (BTC) prices, corporate decisions, basketball match outcomes, and election results. Traders can deposit cryptocurrency through the Polygon blockchain network and trade shares that represent the likelihood of specific future outcomes.
In March 2026, Polymarket acquired Brahma, a crypto and decentralized finance (DeFi) infrastructure startup, to simplify its blockchain infrastructure for users. The acquisition signaled Polymarket's commitment to its crypto roots since its inception.
According to Pew Research Center, combined monthly global trading volume on Polymarket and Kalshi rose from less than $5 billion in September 2025 to about $24 billion in April 2026. Sports, politics, and cryptocurrency have accounted for 90% of the volume on these platforms for two years. Bernstein estimated that prediction market volumes will grow to around $1 trillion by 2030.
However, instances of insider trading have plagued the prediction markets. A Google employee was recently charged with using insider information to buy several Google-related contracts on Polymarket and profiting nearly $1.2 million.
Goldman Sachs Bans Employees from Specific Prediction Market Contracts
Goldman Sachs (NYSE: GS) is taking action to control insider trading behavior, CNBC reported on July 10. According to the report, Goldman Sachs has banned its employees from trading contracts related to events specific to the investment bank. The ban also extends to contracts related to elections, financial markets, macroeconomic data, and geopolitics.
When TheStreet Roundtable reached out to Goldman Sachs for confirmation of the CNBC report, the bank's representative declined to comment.
"Financial institutions, they have huge compliance departments," Lara Shortz, a partner at Michelman & Robinson in its labor and employment practice, told the publication. "They spend a lot of time putting together policies related to trading and the use of information."
Few Companies Disclose Prediction Market Trading Policies
CNBC said it contacted 50 companies that have contracts regarding details about their businesses on prediction market platforms. Only three companies revealed they have policies related to trading on prediction markets, while another two said they were actively reviewing the matter.
FAQ
What did Goldman Sachs reportedly ban on July 10?
Goldman Sachs reportedly banned its employees from trading certain prediction market contracts, according to a CNBC report on July 10. The ban covers contracts related to elections, financial markets, macroeconomic data, geopolitics, and events specific to Goldman Sachs itself.
Why did Goldman Sachs implement this trading ban?
The move comes amid growing concerns over insider trading in prediction markets. A recent case involved a Google employee who was charged with using insider information to buy Google-related contracts on Polymarket, profiting nearly $1.2 million.
How much has prediction market trading volume grown?
According to Pew Research Center, combined monthly global trading volume on Polymarket and Kalshi rose from less than $5 billion in September 2025 to about $24 billion in April 2026. Bernstein estimated that prediction market volumes will grow to around $1 trillion by 2030.
