US Lawmaker Ritchie Torres Proposes Bill to Curb Insider Trading in Prediction Markets
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
- Legislative Proposal: US Representative Ritchie Torres is preparing to introduce the Public Integrity in Financial Prediction Markets Act of 2026, aimed at prohibiting federal officials from trading prediction market contracts based on nonpublic information, thereby enhancing market transparency and fairness.
- Insider Trading Standards: The bill extends existing insider trading regulations to prediction markets, prohibiting the buying and selling of contracts tied to government policy or political outcomes when possessing nonpublic information, which is expected to significantly impact market participants' behavior.
- Event-Driven Trading: Prior to the bill's introduction, an account placed a $32,000 bet on Polymarket predicting Venezuelan President Maduro's ouster by January 31, 2026, and profited over $400,000 after his capture, raising widespread concerns about potential insider trading.
- Security Issues: Polymarket recently faced account security issues, with multiple users reporting drained funds, although the company stated that it has fixed a vulnerability caused by a third-party authentication provider, highlighting the need for stronger protections for user funds.
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.
