IIA Urges Stronger Governance, Internal Controls, and Independent Audit for Prediction Markets

The Institute of Internal Auditors (IIA) has called on U.S. policymakers and regulators to implement robust governance, internal controls, and independent internal audit requirements for the burgeoning prediction market industry. In letters to the CFTC and Congressional leadership, the IIA highlighted risks such as insider trading and market manipulation, advocating for frameworks that ensure consistent testing and enforcement of controls through independent assurance. This initiative aims to safeguard public trust and align prediction markets with established financial market standards.