U.S. Representative Ritchie Torres is set to introduce the "Public Integrity in Financial Prediction Markets Act of 2026," aimed at curbing insider trading in prediction markets. The proposed legislation seeks to prevent federal officials and staff with access to non-public information from trading in prediction market contracts related to government policies or political outcomes. The bill follows a controversial incident where an account on Polymarket profited over $400,000 from a $32,500 investment, coinciding with a surge in contract probabilities just before President Trump announced a military operation in Venezuela. This has raised concerns about the use of insider information in prediction markets. While Kalshi has reiterated its prohibition of trading on non-public information, both Torres' office and Polymarket have yet to comment further on the matter.
U.S. Congressman Introduces Bill to Regulate Insider Trading in Prediction Markets
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