Regulate Prediction‑Market Insider Trading

Updated: 2026.01.07 22D ago 1 sources
Treat online prediction markets that price political events as a regulated venue for insider‑trading law: ban government officials and appointees from trading on material nonpublic political information, require platforms to log and report large or unusual political bets, and give agencies whistleblower and audit powers to investigate suspicious trades. — Extending insider‑trading norms to prediction markets would close a governance gap with implications for political accountability, platform compliance, and how private markets interact with state secrecy and covert operations.

Sources

Congressman Introduces Legislation To Criminalize Insider Trading On Prediction Markets
BeauHD 2026.01.07 100% relevant
Rep. Ritchie Torres’s Public Integrity in Financial Prediction Markets Act of 2026, prompted by Polymarket wagers tied to Nicolás Maduro’s removal, directly exemplifies the proposal.
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