Karen Woody Quoted in The New York Times on Prediction Market Regulation Washington and Lee law professor Karen Woody discusses insider trading concerns in the rapidly growing prediction market industry.

By Law Communications
August 13, 2026

Karen Woody, professor of law at Washington and Lee University, was quoted in The New York Times about regulatory challenges surrounding insider trading on prediction markets.

The article, “Prediction Firms Are Flagging Insider Traders. Many Will Not Face Charges,” examines a rise in suspected insider trading on platforms that allow users to wager on the outcomes of events ranging from sports and politics to presidential pardons.

According to the Times, prediction market Kalshi referred 32 possible insider traders to the Commodity Futures Trading Commission during the three months ending in June. The article explores whether existing laws and the CFTC’s enforcement resources are adequate to police a rapidly expanding industry, noting that some trading based on inside information may fall outside current legal prohibitions.

“We are in a very new, unique situation,” Woody told the Times. “There need to be some fixes.”

Woody is a leading expert in the areas of securities law, financial regulation, and white-collar crime and is frequent commentor in the media on these issues. She is a current member of FINRA’s National Adjudicatory Council, and the chairperson of the FINRA’s Statutory Disqualification Committee. She also serves on the Board of Advisors for the SEC Historical Society, and is a board member of the Corporate Governance Institute. She is also a member of the Academy of International Financial Crime Litigators.

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