Robinhood limits prediction market access to eliminate insider trading risks
DL
Dax Lockwood
Robinhood · Apr 14, 2026
Source: DojiDoji Data Terminal
U.S. users on Robinhood can no longer access 'mention markets,' where traders speculate on whether specific phrases will appear in public speeches or earnings calls. The platform has narrowed its range of event-based bets to limit exposure to insider trading and market abuse.
Jordan Sinclair, president of Robinhood UK, said the firm is "very focused" on preventing market abuse and preventing users from gaining an unfair advantage through privileged information. This caution follows instances of unusually large bets preceding the U.S. attack on Iran in February and charges filed by Israeli authorities against two people who used classified information to bet on military operations.
Robinhood is operating under CFTC oversight through a partnership with Kalshi, a project expected to generate $300 million in yearly revenue. The company is prioritizing contracts from regulated venues like Kalshi and ForecastEx, while avoiding platforms such as Polymarket that operate with less oversight.
Robinhood is currently in a legal dispute with a set of Massachusetts regulators who argue that event-based contracts may be unregistered securities. Robinhood asserts they are federally regulated derivatives under the jurisdiction of the jurisdiction of the Commodity Futures Trading Commission.