Several U.S. Democrats support a bill banning government officials from participating in political prediction market betting.
TL;DR
A bill introduced by U.S. Democrats aims to ban government officials from using insider information to bet on political outcomes in prediction markets, following concerns over insider trading. It seeks to prevent profiting from official knowledge and is currently looking for Republican backing.
Odaily Odaily that New York State Assemblywoman Ritchie Torres formally introduced a legislative proposal on Friday entitled the "Public Integrity Act for Financial Prediction Markets of 2026." The bill, supported by 30 Democrats including former House Speaker Nancy Pelosi, aims to prohibit elected officials, political appointees, executive branch employees, and congressional staff from using material information obtained in their official capacity to bet on government policies, actions, or political outcomes in prediction markets.
A Polymarket user previously profited $400,000 by betting that former Venezuelan President Nicolás Maduro would step down by the end of the month, raising concerns about insider trading. Ritchie Torres stated that it is essential to prohibit government insiders from profiting through market predictions to prevent individuals from using this information to advance policies for their own benefit. The bill is currently seeking Republican support. (The Blcok)