And? Insider trading is bad because it's unfair, and the stock market is supposed to be fair. Prediction markets are not fair. If you are looking for a fair market, prediction markets are not that. Insider trading is accepted and encouraged in prediction markets because it makes the predictions more accurate, which is the entire point.
By 'fair', I mean 'all parties have access to the same information'. The stock market is supposed to give everyone the same information. Trading with privileged information (insider trading), is illegal. Publicly traded companies are required to file 10-Qs and 10-Ks. SEC rule 10b5-1 prohibits trading with material non-public information. There are measures and regulations in place to try to make the stock market fair. There are, by design, zero such measures with prediction markets. Insider trading improves the accuracy of prediction markets, which is their whole purpose to begin with.
