California bars officials from prediction market insider betting as federal ban takes shape

California Governor Gavin Newsom issued an executive order immediately prohibiting gubernatorial appointees from using confidential information obtained through their roles to profit from prediction market activity, either directly or by assisting others. Newsom framed the move as standing against corruption, contrasting it with Donald Trump's self-enrichment. This state action follows growing national concern over suspiciously timed, high-value bets made before major events, such as U.S. military actions. In Congress, the bipartisan PREDICT Act has been introduced to ban members of Congress and federal officials from trading on outcomes related to political events and government actions, with violators facing profit forfeiture and fines. Major prediction market platforms, Polymarket and Kalshi, which recently surpassed $20 billion in combined monthly trading volume, have also implemented new restrictions and surveillance measures to curb insider trading.

(Source：The Block)