US Lawmakers Introduce Bill to Curb Prediction Market Insider Trading

[lingriiddd]

U.S. lawmakers are moving to address insider trading concerns in prediction markets following lucrative bets tied to sensitive political events, including reports of a trader turning $30,000 into over $400,000 ahead of a geopolitical development. Ritchie Torres introduced the Public Integrity in Financial Prediction Markets Act of 2026, backed by more than 30 co-sponsors including Nancy Pelosi, to ban federal elected officials, appointees and staff from trading on prediction market contracts linked to government policies or outcomes while in possession of nonpublic information.

The proposed legislation aims to close what supporters call an ethical gap in the rapidly growing prediction market sector by preventing government insiders from profiting off privileged knowledge. While insider trading is illegal in traditional securities markets, prediction markets currently operate with weaker explicit prohibitions and enforcement, prompting lawmakers to act as these platforms expand in popularity and influence.

[tradelikepro]

banning officials from trading seems obvious, wild it wasnt a rule already