Hardline stance in California. Governor Gavin Newsom signed an executive order prohibiting appointed state officials from using insider information to bet on prediction markets.Newsom used his social media platforms to confirm the measure, asserting that acts of corruption compromising the integrity of state processes will not be tolerated.
This measure highlights the growing importance of prediction markets as tools for speculation on economic, political, and sporting events. While the use of internal information is already prohibited by the Commodity Exchange Act (CEA), the Governor’s action reinforces ethical oversight within the state of California. The move comes at a time when the CFTC is under constant vigilance; in fact, it has already sanctioned operators on platforms like Kalshi for similar practices, highlighting the need for stricter regulatory frameworks.
The strengthening of these ethical controls represents a crucial step for the maturation of derivatives markets and blockchain-based betting. With this order, California sets a precedent for other states in managing conflicts of interest within the crypto and financial ecosystem.
Source:https://x.com/CAgovernor/status/2037552299145560150
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