Lawmakers Press CFTC to Warn Federal Employees About Event Contracts

At least 42 Democratic lawmakers sent a letter to the Commodity Futures Trading Commission (CFTC) Chair Mike Selig and the Office of Government Ethics, demanding they issue executive branch-wide guidance warning federal employees against using inside knowledge to trade in prediction markets. This action was prompted by "multiple incidents" suggesting possible insider trading by federal employees, including trades related to the capture of Nicolás Maduro, the length of a White House press secretary's speech, and suspicious trades concerning the invasion of Iran and the death of Ayatollah Khamenei. The lawmakers argue that since the CFTC regulates event contracts as derivatives, they fall under the STOCK Act, which prohibits government officials from using material, nonpublic information for personal gain. They requested a briefing by April 13 regarding any investigations into federal employee insider trading on these platforms and the steps the CFTC is taking to prevent such activity.

(Source：Cointelegraph)