Summary
A new bill aims to stop government officials from using insider information to make money from online prediction markets. This push comes after large profits were made from bets on Venezuelan President Nicolás Maduro’s extradition to the U.S.
Key Facts
- A House Democrat proposed a bill to ban insider trading in online prediction markets by government officials.
- The move was spurred by significant profits from bets on Nicolás Maduro's removal prior to his extradition to the U.S.
- One individual made over $400,000 on a prediction market called Polymarket.
- Current insider trading laws cover capital markets, but not online prediction platforms.
- The proposed bill is named the Public Integrity in Financial Prediction Markets Act of 2026.
- The bill seeks to prevent trades based on non-public, important information by federal officials.
- It is uncertain if the bill will progress as the House Speaker and President Trump have not commented.
- Polymarket has not yet responded, while another platform, Kalshi, states it already bans insider trading.
