Ritchie Torres Proposes Ban on Officials Trading in Prediction Markets
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 09 2026- Legislative Proposal: New York Representative Ritchie Torres, backed by over 30 Democrats, introduced the Public Integrity in Financial Prediction Markets Act of 2026, aiming to prohibit federal officials from trading in prediction markets when possessing nonpublic information, thereby reducing insider trading risks.
- Insider Trading Concerns: The proposal follows a Polymarket user winning $400,000 on a bet predicting Nicolás Maduro's ouster, raising widespread concerns about government officials exploiting prediction markets for personal gain, highlighting corruption risks in Washington, D.C.
- Policy Implications: Torres emphasized that allowing officials to trade in prediction markets could incentivize them to push policies that benefit their own interests, further exacerbating public concerns about political corruption and underscoring the urgency of the legislation.
- Senate Action: Concurrently, the Senate plans to review a digital asset market structure bill next week, which aims to alter the regulatory roles of the Commodity Futures Trading Commission and Securities and Exchange Commission, potentially having far-reaching effects on the crypto industry.
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.
