"Democratic Rep. Ritchie Torres of New York on Friday introduced a bill called the Public Integrity in Financial Prediction Markets Act of 2026, which would bar federal elected officials, political appointees, Executive Branch employees, and congressional staff from making trades on prediction markets when they have nonpublic information related to the transaction, or might be able to obtain it via their official duties."
"Polymarket does not currently have significant restrictions or rules against insider trading. In fact, CEO Shayne Coplan has argued that insider trading via prediction markets can be a public good. "What's cool about Polymarket is that it creates this financial incentive for people to go and divulge the information to the market," Coplan said at an Axios Business event. Polymarket did not respond to Business Insider's request for comment. By contrast, Kalshi - another major prediction market platform - has rules barring insider trading."
An account on Polymarket placed a $30,000 bet that Nicolás Maduro would be out of office by January 31, 2026, and collected $436,759.61 after Maduro's capture the next day. Democratic Rep. Ritchie Torres introduced the Public Integrity in Financial Prediction Markets Act of 2026 to bar federal elected officials, political appointees, Executive Branch employees, and congressional staff from trading on prediction markets when they have nonpublic information or could obtain it through official duties. Thirty House Democrats, including Nancy Pelosi, are cosponsors of the bill. Polymarket currently lacks significant insider-trading restrictions, and CEO Shayne Coplan defended insider trades as potentially revealing information. Kalshi enforces rules that would have prohibited the Maduro trade.
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