US lawmakers propose bill: Ban officials from using their positions to trade in prediction markets

2026-01-05 17:24:10

Abstract generation in progress

【BlockBeats】The political prediction market has recently caused some trouble. An insider made tens of thousands of dollars by accurately betting on the outcome of a country’s political situation. This incident has attracted attention.

A member of the New York State Congress has recently become restless. He plans to introduce a new bill this week—the “2026 Financial Prediction Market Public Integrity Act.” What does this bill do? In simple terms, it aims to regulate the actions of federal officials.

Specifically, the bill will prohibit federally elected officials, political appointees, and administrative staff from engaging in speculative trading on prediction markets. Especially those who use non-public information obtained through their official duties will be strictly forbidden. In other words, they cannot use insider information gained through their work to profit from prediction markets.

This reflects a problem: as new trading methods like prediction markets become popular, regulatory gaps are also exposed. How to balance innovation and risk prevention has become a pressing issue.

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ForkItAllDay

· 6h ago

Here comes the "Integrity Act" to cut leeks again. How many corrupt officials can it really stop? Banning this and prohibiting that again—does no one think about how to make the market truly transparent? Honestly, legislation is only enacted after being caught; why didn't they do it earlier? Prediction markets are essentially information games. Now they want to regulate? It's a bit late, buddy. Insider trading under a different guise is just prediction markets in disguise. Bans can't stop those who want to exploit the system. If this bill really passes, I might believe it. But don't set your expectations too high.

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AirdropAnxiety

· 11h ago

Is there a new trick to cut leeks again? Officials are all trading in prediction markets, how can ordinary people play --- This bill is too late; it should have been regulated earlier --- The advantage of insider information is so obvious, no wonder ordinary retail investors have been losing... --- Prohibition is one thing, how to regulate is another issue --- Prediction markets still depend on who has more accurate information; this game is inherently unfair --- Wait, doesn't this indirectly admit that insider trading exists in prediction markets? Then is our trading still meaningful? --- At least the US is trying to regulate, what about us? --- Basically, it's still about rent-seeking power; as long as there is an information gap, someone will take risks

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SchrodingerAirdrop

· 15h ago

It was about time to regulate this; officials profiting from insider information to harvest retail investors is too much. If this bill really passes, predicting the market might have a chance, otherwise it's no different from a casino. It's hard to believe—those with information advantage can make a profit easily, while retail investors have to spend so much time researching. This time, they’ve targeted the core issue in the crypto market, which could actually help with development. Banning insider trading is correct, but the real challenge is how to enforce it.

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SnapshotBot

· 01-06 16:46

Banning this and that again, it's better to first regulate your own insider trading.

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AirDropMissed

· 01-05 17:53

They're banning it again. These people are just afraid retail investors will make money. Now it's all blocked by insider trading. Can we still play the prediction market? It should have been regulated long ago. The insiders profiting from retail investors is almost a given. Just wait and see, after this bill passes, will the prediction market cool down? But then again, will the bill really be enforced properly?

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ForkLibertarian

· 01-05 17:40

Want to regulate again? Now it's better. Politicians get caught profiting from prediction markets, and now they want to legislate to ban others. Insider trading definitely needs regulation, but once this bill passes, can prediction markets still survive? They say ban it, so they ban it. Do they really think they can plug all the loopholes? The higher the mountain of virtue, the higher the devil. Regulatory gaps are real, but this move feels like it will stifle innovation again. It's only a few million dollars, so why make such a big fuss? Wall Street insider trading involves billions every day, why is no one regulating that? Isn't this an inevitable consequence of concentrated power? The more regulation, the easier it is for the powerful to exploit loopholes. It's only a matter of time. Decentralizing prediction markets is the way out.

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DaoTherapy

· 01-05 17:39

Another new trick to cut leeks, officials are starting to play prediction markets Insider trading never goes out of style... just with a different disguise called prediction markets It's typical to think of legislation only after the fact, this speed is truly remarkable How can politicians really ban themselves from making quick money? Honestly, it's just a formality Prediction markets are fundamentally information games, those with power always win No wonder so many officials are starting to pay attention to cryptocurrencies, a new legal channel for profit Regulators can't keep up with the pace of innovation, it's always like this Just banning officials is useless; this market itself is a game of information asymmetry The bill is introduced this week, and next week it will be bypassed... Another regulatory show, but it can't really change anything

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PaperHandsCriminal

· 01-05 17:24

Haha, banning officials from trading again. By the time this bill is passed, those people probably have already cashed out and run away.

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RamenDeFiSurvivor

· 01-05 17:24

Another "regulation," meaning there are too many people cutting leeks, so it needs to be controlled. Prohibiting officials from trading prediction markets? Ha, can this bill pass? Legislation is needed for insider trading earning hundreds of thousands, but what about on-chain whales manipulating? Double standards. It should have been regulated long ago, or else prediction markets will become tools for power monetization. This is getting interesting. Let's see how Wall Street finds loopholes.

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