US Lawmakers Target Insider Trading on Prediction Markets

[cryptobro]

US Representative Ritchie Torres is preparing legislation aimed at restricting insider trading on prediction markets. According to Punchbowl News, Torres plans to introduce the Public Integrity in Financial Prediction Markets Act of 2026, which would bar federal officials from trading contracts tied to political or policy outcomes when they possess nonpublic information.

The proposal would apply to elected officials, political appointees, and executive branch employees, extending insider trading standards already used in traditional financial markets to platforms like Polymarket and Kalshi. Supporters argue the move is necessary as prediction markets increasingly intersect with real-world governance and sensitive information.

[madtrader]

polymarket + politics was always gonna get messy, surprised this didnt come up sooner tbh