House Proposes Bill to Bar Officials from Prediction Markets Amid Insider Trading Concerns
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 09 2026- Legislative Proposal: House Democrats introduced the Public Integrity in Financial Prediction Markets Act of 2026 on Friday, aiming to bar federal officials from participating in prediction markets, reflecting a commitment to government transparency amid insider trading concerns.
- Clear Target: The bill specifically targets officials who could exploit nonpublic information, prohibiting them from trading in markets related to government policy or political outcomes, which aims to uphold public trust and prevent conflicts of interest.
- High-Stakes Bets Under Scrutiny: The proposal follows scrutiny of a $400,000 wager on Polymarket linked to Venezuelan President Maduro's removal, with critics arguing such trades may benefit from privileged insights into U.S. operations, highlighting the risks of insider trading.
- Industry Response: Kalshi's CEO supports the bill, noting that his platform already enforces insider trading prohibitions, while decentralized markets without strict rules raise fairness concerns, reflecting heightened scrutiny of the intersection between new financial technologies and government power.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
