What is the "2026 Financial Forecast Market Public Integrity Act"? Why is it supported by 30 Democratic Congress members?

Including 30 Democratic members of Congress, among them former House Speaker Nancy Pelosi, recently publicly expressed support for the “Public Integrity in Financial Prediction Markets Act of 2026,” which proposes to ban all elected officials and insiders from participating in political prediction market transactions to prevent conflicts of interest between policy power and personal profit. This legislation emerged in connection with a wallet linked to Trump confidant Steven Charles, which placed bets before the arrest of Venezuelan President Maduro and profited $400,000.

According to the current draft of the bill, the legislation will:

• Prohibit federal elected officials

• Prohibit political appointees

• Prohibit administrative agency officials

And in its latest version, include congressional aides and staff

From participating in any prediction market transactions related to government policies, actions, or political outcomes when they hold or can reasonably obtain material non-public information through their official duties.

Ban elected officials from betting on political prediction markets, targeting insider trading concerns within Polymarket

The U.S. Congress is accelerating its response to the highly controversial recent “insider trading in political prediction markets” incident. Including former House Speaker Nancy Pelosi, a total of 30 Democratic members of Congress recently publicly supported a new bill that aims to fully ban elected officials and insiders from engaging in political prediction market transactions to prevent conflicts of interest between policy authority and personal gain.

(A new wallet placed bets on Maduro’s arrest and profited $400,000; the insider address is suspected to be associated with Trump confidant WLFI co-founder )

The bill is titled the “Public Integrity in Financial Prediction Markets Act of 2026,” introduced by New York Democratic Congressman Ritchie Torres on January 9.

Polymarket repeatedly reports insider addresses profiting

This legislative action is directly triggered by a shocking prediction market trade. According to foreign media and on-chain data, a Polymarket account heavily bet on Nicolás Maduro’s “resignation this month” shortly before the former Venezuelan president was detained by U.S. authorities, ultimately earning about $400,000. The incident quickly sparked public suspicion over whether insiders were using non-public information to profit from bets.

Based on the current draft of the bill, the legislation will:

• Prohibit federal elected officials

• Prohibit political appointees

• Prohibit administrative agency officials

And in its latest version, include congressional aides and staff

From participating in any prediction market transactions related to government policies, actions, or political outcomes when they hold or can reasonably obtain material non-public information through their official duties. Torres emphasized that if insiders participate in prediction markets, it could create an “extremely distorted incentive structure,” potentially driving policy decisions solely to benefit personal betting positions.

On-chain investigation suggests the profit wallet may be linked to Trump confidant, WLFI co-founder

Beyond policy concerns, blockchain data complicates the case further. The blockchain tracking platform Lookonchain identified three newly created wallets that heavily bet before the incident, with total profits exceeding $630,000, including a single wallet earning over $400,000.

Further investigation indicates that the funds from this key wallet may trace back to Steven Charles, a real estate billionaire and Middle East envoy appointed by Trump. Steven Charles is also a co-founder of WLFI, and his family has longstanding close ties with the Trump family, making this incident not only a matter of market regulation but also highly sensitive politically.

Prediction markets are rapidly growing, revealing regulatory gaps

Over the past year, political prediction markets have grown quickly, with platforms like Polymarket and Kalshi attracting large user bases during the 2024 U.S. election, allowing investors (mostly via cryptocurrencies) to bet on election outcomes and political events.

Supporters argue that prediction markets help with price discovery and information aggregation. However, critics warn that if market participants are policymakers themselves, prediction markets could become legalized insider trading venues.

Regarding whether the bill can gain bipartisan support, Torres’s office stated that it does not rule out the possibility. A spokesperson noted that the bill has been opened for signatures from all Congress members, hoping for Republican lawmakers to join the discussion.

What is the “Public Integrity in Financial Prediction Markets Act of 2026”? Why do 30 Democratic Congress members support it? The article first appeared on Chain News ABMedia.