Goldman Sachs Restricts Employees From Betting on Predictions
WHO:
CNBC - A representative for Goldman Sachs stated that the bank prohibits using material, nonpublic information to trade across all markets.
NY Post - Goldman Sachs employees are affected by the new policy.
CNBC - David Oliwenstein, a partner and securities enforcement practice lead at Pillsbury, commented on the regulatory expectations.
CNBC - Karen Woody, a law professor at Washington and Lee University, discussed the challenges of insider trading in prediction markets.
CNBC - Tiffany Magri, a regulatory advisor at compliance technology company Smarsh, emphasized the need for clear expectations in company policies.
WHAT:
CNBC - Goldman Sachs has banned its employees from trading on contracts related to events specific to the bank, elections, financial markets, macroeconomic data, and geopolitics.
NY Post - Goldman Sachs has banned employees from participating in event-based contracts that could create conflicts of interest.
CNBC - The bank's policy prohibits trading on contracts related to events specific to the bank, elections, financial markets, macroeconomic data, and geopolitics.
CNBC - The Commodity Futures Trading Commission and Department of Justice charged Google employee Michele Spagnuolo with insider trading, allegedly profiting about $1.2 million.
CNBC - Only three out of 50 companies surveyed revealed they have policies related to trading on prediction markets.
WHERE:
CNBC - The incident involving Michele Spagnuolo occurred while trading on Polymarket contracts.
CNBC - Goldman Sachs is based in New York City.
WHEN:
CNBC - The first event contract insider-trading case to involve a private sector company occurred in May.
CNBC - The insider trading case involving Michele Spagnuolo occurred in May.
CNBC - The event contract insider-trading case was the first of its kind involving a private sector company.
CNBC - A Polymarket advertisement was noted on February 5, 2026.
WHY:
CNBC - Insider trading is a growing concern in prediction markets, prompting companies like Goldman Sachs to implement restrictions.
CNBC - Legal experts indicate that companies are facing increased pressure to develop policies to manage insider trading risks.
HOW:
CNBC - Kalshi announced new employment verification tools for participants on some prediction markets to combat insider trading.
CNBC - Goldman Sachs has implemented a policy to prohibit the use of material, nonpublic information for trading across all markets.
CNBC - Kalshi announced new employment verification tools for participants on some prediction markets to combat insider trading.
CNBC - Kalshi partnered with StarCompliance to allow employers to access their employees' event contract trades.
(UPDATED July 9, 2026 23:20 UTC)
Goldman Sachs has implemented a ban on its employees trading on contracts tied to events specific to the bank, as well as elections, financial markets, macroeconomic data, and geopolitics. A representative for the bank emphasized that they prohibit the use of material, nonpublic information for trading across all markets. In response to concerns about insider trading, Kalshi has introduced new employment verification tools for participants in some prediction markets.
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(UPDATED July 9, 2026 22:25 UTC)
Goldman Sachs has implemented a new policy banning employees from participating in event-based contracts that could lead to conflicts of interest, particularly those related to the bank, elections, financial markets, macroeconomic data, and geopolitics. This move comes amid growing concerns about insider trading in prediction markets, highlighted by the recent case involving Google employee Michele Spagnuolo, who was charged with profiting approximately $1.2 million through insider trading on Polymarket contracts. Legal experts emphasize that companies are under increasing pressure to establish clear policies to manage insider trading risks, with only three out of fifty surveyed companies currently having such policies in place.