US Lawmaker Introduces Bill to Ban Politically-Related Prediction Bets
Representative Ritchie Torres introduced legislation to ban federal officials from trading prediction market contracts tied to political outcomes.Summary
New York Representative Ritchie Torres, supported by over 30 Democrats, introduced the Public Integrity in Financial Prediction Markets Act of 2026 following a Polymarket user winning $400,000 on a bet concerning the removal of Venezuelan President Nicolás Maduro. The proposed bill would prohibit federal elected officials, political appointees, Executive Branch employees, and congressional staff from trading prediction market contracts linked to government policy or political outcomes if they possess material nonpublic information. Torres argued that the intersection of prediction markets and the federal government presents demonstrated dangers of insider trading and self-dealing, suggesting that allowing officials to use platforms like Polymarket could incentivize them to push policies for personal profit. He specifically voiced fears that Donald Trump or his associates might use prediction markets for self-enrichment, stating, "No elected official is elected to profit from elected office." Meanwhile, in the Senate, lawmakers are preparing to advance comprehensive digital asset market structure legislation.
(Source：Cointelegraph)