U.S. lawmakers propose banning federal officials from using insider information to trade in prediction markets

According to Crypto.news, Congressman Ritchie Torres (Democrat from New York) and former House Speaker Pelosi have spearheaded legislation aimed at preventing federal officials from betting on prediction markets. The newly announced "2026 Financial Prediction Markets Public Integrity Act" will prohibit federally elected officials, politically appointed officials, executive branch employees, and congressional staff from buying, selling, or exchanging prediction market contracts related to government policies, government actions, or political outcomes, provided they possess or may reasonably obtain significant non-public information through their official positions.