Congressman Introduces Legislation To Criminalize Insider Trading On Prediction Markets (axios.com)
(Wednesday January 07, 2026 @05:00AM (BeauHD)
from the low-odds-this-will-pass dept.)
- Reference: 0180530585
- News link: https://yro.slashdot.org/story/26/01/07/0026210/congressman-introduces-legislation-to-criminalize-insider-trading-on-prediction-markets
- Source link: https://www.axios.com/2026/01/05/venezuela-polymarket-prediction-insider-trading
Ritchie Torres has introduced a bill to [1]ban government officials from using insider information to trade on political prediction markets like Polymarket. The bill was prompted by reports that traders on Polymarket made large profits betting on [2]Nicolas Maduro's removal , raising suspicions that some wagers were placed using material non-public information. "While such insider trading in capital markets is already illegal and often prosecuted by the Justice Department and Securities and Exchange Commission, online prediction markets are far less regulated," notes Axios. From the report:
> Rep. Ritchie Torres' (D-N.Y.) three-page bill, a [3]copy of which was obtained by Axios, is called the Public Integrity in Financial Prediction Markets Act of 2026. It would ban federal elected officials, political appointees and bureaucrats from making insider trades on prediction sites sites such as Polymarket. Specifically, the bill prohibits such government officials from trading based on information that is not publicly available and that "a reasonable investor would consider important in making an investment decision." [...] It's not clear if House Speaker Mike Johnson (R-La.) would put Torres' bill to a vote in the House or if President Trump would sign it.
"We're looking at the specifics of the bill, but we already ban the activity it cites and are in support of means to prevent this type of activity," said Elisabeth Diana, a spokesperson for the prediction website Kalshi.
Diana added that the "activity from the past few days" did not occur on their platform.
[1] https://www.axios.com/2026/01/05/venezuela-polymarket-prediction-insider-trading
[2] https://slashdot.org/story/26/01/03/200236/the-us-invaded-venezuela-and-captured-nicols-maduro---but-chatgpt-and-perplexity-disagree
[3] https://www.documentcloud.org/documents/26456676-torres-polymarket-bill-insider-trading/
> Rep. Ritchie Torres' (D-N.Y.) three-page bill, a [3]copy of which was obtained by Axios, is called the Public Integrity in Financial Prediction Markets Act of 2026. It would ban federal elected officials, political appointees and bureaucrats from making insider trades on prediction sites sites such as Polymarket. Specifically, the bill prohibits such government officials from trading based on information that is not publicly available and that "a reasonable investor would consider important in making an investment decision." [...] It's not clear if House Speaker Mike Johnson (R-La.) would put Torres' bill to a vote in the House or if President Trump would sign it.
"We're looking at the specifics of the bill, but we already ban the activity it cites and are in support of means to prevent this type of activity," said Elisabeth Diana, a spokesperson for the prediction website Kalshi.
Diana added that the "activity from the past few days" did not occur on their platform.
[1] https://www.axios.com/2026/01/05/venezuela-polymarket-prediction-insider-trading
[2] https://slashdot.org/story/26/01/03/200236/the-us-invaded-venezuela-and-captured-nicols-maduro---but-chatgpt-and-perplexity-disagree
[3] https://www.documentcloud.org/documents/26456676-torres-polymarket-bill-insider-trading/
Just a few days late, eh? (Score:2)
by Mr. Dollar Ton ( 5495648 )
Oh, wait, it ain't going to pass anyway.
So more selectively-enforced, weaponized laws? (Score:2)
by sinkskinkshrieks ( 6952954 )
Sounds like knee-jerk legislation when an 800 lbs. gorilla is still actively busting up a dinnerware shop. Maybe impeach and convict the gorilla for being a terrorist.
Shame (Score:2)
by quintessencesluglord ( 652360 )
Maybe a Pollyanna view of the world but it is a mark of the degeneracy of government (and maybe of the country) that laws like this are required instead of a sense of shame or possibly the threat of tar and feathering to keep the most egregious abuses in check.
Any high-mindedness has fallen. We are a nation of whores.
Why so limited? (Score:2)
by DrMrLordX ( 559371 )
People outside of government can game Polymarket et al. Why is this legislation only aimed at elected officials?
What congress already does (Score:3)
> ... if President Trump would sign ...
Of course the king of fraud won't sign but that's not the problem. Who has the power to seize e-mails and trace the payment of moneys? Without that, it's a "been a very naughty boy" posture: If you don't get caught red-handed, it's easy money. In other words, what US congress already does.