Ritchie Torres Targets Insider Trading on Prediction Markets
Representative Ritchie Torres plans legislation to curb insider trading on prediction markets following a large profit from a Maduro ouster bet.Summary
US Representative Ritchie Torres is set to introduce the Public Integrity in Financial Prediction Markets Act of 2026, which aims to prohibit federal officials and employees from trading prediction market contracts related to government policy or political outcomes if they possess nonpublic information from their official duties. This move follows scrutiny over a highly profitable trade on Polymarket where an account netted over $400,000 overnight by betting on the removal of Venezuelan President Nicolás Maduro, which occurred shortly after the bet was placed. The proposed bill mirrors existing insider trading standards for traditional finance but extends them to the prediction market sector. Separately, Polymarket addressed recent user reports of account breaches, attributing the issue to a vulnerability in a third-party authentication provider, which the company claims has been fixed.
(Source：Cointelegraph)