Joseph Grundfest. Credit: Jennifer Paschal Stanford scholar and former SEC Commissioner Joseph Grundfest shares insights on prediction markets, which are gaining popularity amid concerns over regulation and potential manipulation. Prediction markets—online platforms where users bet on future events—are surging in popularity and facing scrutiny amid reports of market manipulation and insider trading. Just last month, a soldier in the U.S. Special Forces placed a wager using classified information about the imminent removal of Venezuelan leader Nicolas Maduro—earning him over $400K and an arrest for using highly sensitive information for personal gain. Federal agencies are now weighing in on how to regulate prediction markets, with critical questions looming.…