US Congressman proposes legislation to ban insider trading in prediction markets

2026-01-04 03:26:21

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CoinVoice has learned that U.S. Representative Ritchie Torres will introduce the “2026 Financial Prediction Market Public Integrity Act,” which prohibits federal officials from trading prediction markets using material non-public information. This move stems from a controversial incident: a Polymarket account created in December last year wagered approximately $32,500 solely on the Venezuela situation and made over $400,000 within 24 hours of Maduro’s arrest by the U.S. military, with a return rate of over 1200%.

The account made only 4 predictions, all related to U.S. intervention in Venezuela, and the market began to rise hours before Trump announced the news, raising questions about insider trading. The bill will extend the principles of the STOCK Act to prediction markets, which had a trading volume of over $44 billion in 2025.

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