U.S. Representative Seeks Prediction Market Ban for Federal Officials

Representative Ritchie Torres (D-NY) is rallying support for the Public Integrity in Financial Prediction Markets Act of 2026. The bill seeks to bar government officials from using insider information to profit from prediction markets.

What's the Scoop?

• Insider Edge: Government officials may have advanced knowledge of events before they occur. These privileged insights could be unfairly monetized by using prediction markets to front run the outcome of an event.
• Trading Ban: Representative Torres' three-page bill seeks to ban elected federal government officials, political appointees, and employees of Executive branch agencies from using non-public information to place bets on prediction market platforms.
• Recent Example: Immediately prior to the kidnapping/arrest of Venezuelan Nicolás Maduro, a Polymarket user bet $30k that Maduro would be ousted by the end of January and netted over $400k in profit. The Torres bill expressly seeks to ban such behavior.
• Unclear Goal: In a comment to Axios, a Kalshi spokesperson noted that their prediction market already bans insider trading and is regulated by the CFTC, making it unclear what that bill would accomplish.