Polymarket moved to tighten its governance framework, publishing an expanded market-integrity rulebook that now applies across both its decentralized DeFi platform and its CFTC-regulated U.S. exchange. The update marks a broader push to formalize how the platform defines abuse, monitors suspicious activity and enforces discipline across its markets.
The revisions come at a moment when prediction markets are facing deeper regulatory and legislative scrutiny, especially around manipulation, information misuse and event-linked trading. The practical effect of the new framework is to raise the compliance standard for traders, institutional counterparties and custodial actors that interact with these markets for hedging or informational use.
Today we're publishing new market integrity rules across our CFTC-regulated US exchange & DeFi platform — making clear what's prohibited, how we enforce rules, & how to report suspicious activity.
The World's Largest Prediction Market runs on transparencyhttps://t.co/dWr23zcki6
— Polymarket (@Polymarket) March 23, 2026
A Broader Rulebook With Tighter Conduct Standards
The revised policy now draws a harder line around information-based abuse. Polymarket explicitly prohibits trading on non-public, stolen or illegally obtained information, and it also bars participation by individuals who hold enough influence to affect an event’s outcome. That change is important because it pushes the platform closer to a market-structure model where access and influence are treated as core integrity risks rather than edge cases.
The rulebook also broadens the definition of market misconduct. The platform now specifically lists spoofing, wash trading, front-running, self-dealing, fictitious transactions, information misuse and coordinated attempts to alter contract outcomes as prohibited conduct. By spelling these out, Polymarket is trying to reduce ambiguity around what qualifies as manipulation or abusive behavior.
The overhaul extends beyond trading behavior alone. Polymarket said it will restrict certain market types that it considers especially vulnerable to manipulation or ethical concerns, while also tightening resolution standards and data-source requirements to reduce disputes around outcome settlement. That gives the company a stronger basis for limiting fragile or controversial contracts before they become market-integrity problems.
Surveillance and Enforcement Are Becoming More Formal
The company paired the rule changes with a more layered monitoring system. On the DeFi side, Polymarket is relying on the transparency of Polygon-based on-chain records while adding internal analytics and third-party monitoring to identify anomalous activity. That structure reflects an effort to use blockchain visibility as a starting point rather than as a substitute for active surveillance.
The U.S. exchange side is being handled more like a traditional regulated venue. Polymarket said it has established a dedicated control desk, added real-time monitoring relationships with specialized surveillance providers and entered into a Regulatory Services Agreement with the National Futures Association. That combination is designed to give the platform stronger oversight credibility as scrutiny of event-based markets intensifies.
The new policy also makes the enforcement path clearer. Available remedies now include suspensions, financial penalties, wallet bans and referrals to regulators or law enforcement, giving Polymarket a more explicit sanctions ladder when misconduct is identified. In parallel, the company launched public Market Integrity pages and reporting channels so users can submit tips and review how the rules are applied.
Firms using Polymarket should expect stricter onboarding, closer monitoring and more defined settlement and escalation procedures as the platform aligns DeFi transparency with a more traditional exchange-style compliance model. The revised rulebook now becomes the reference point for how those controls will be interpreted in practice.
