Polymarket has pledged to crack down on insider trading as traders have wagered $12 million on the CLARITY Act. The company announced new measures to address the issue. The betting volume on the legislation highlights the platform's growing role in political prediction markets.

Polymarket's insider-trading crackdown signals the platform is tightening compliance as its political markets scale into eight-figure volume, a move that could preempt regulatory scrutiny and set a standard for other CFTC-regulated venues.