U.S. Congressman Proposes Bill to Ban Insider Trading in Prediction Markets

According to a ChainCatcher report, U.S. Representative Ritchie Torres will propose the "2026 Public Integrity Act for Financial Prediction Markets," which would prohibit federal officials from using material non-public information to trade in prediction markets. This initiative stems from a controversial incident involving a Polymarket account created in December of last year. The account placed bets of approximately $32,500 on the situation in Venezuela and earned over $400,000 within 24 hours after Maduro was arrested by U.S. forces, achieving a return of more than 1,200%. The account made only four predictions, all related to U.S. intervention in Venezuela. Notably, the market began rising several hours before Trump's announcement, raising suspicions of insider trading. The proposed bill would extend the principles of the STOCK Act to prediction markets, which saw over $44 billion in trading volume in 2025.