Your comment seems to imply that trading based on material non-public information in prediction markets is always okay, which is not the case. The CFTC just made a press release detailing some instances of invalid use of nonpublic information on prediction markets: https://www.cftc.gov/PressRoom/PressReleases/9185-26

Interestingly, the CFTC objects to a political candidate trading on their own candidacy on the grounds that it is fraudulent. So it looks like they could attempt to regulate self-trading quite strictly, at least if that theory holds up after a court challenge.