This Friday, Representative Ritchie Torres (D-NY) and 30 other lawmakers, including former House Speaker Nancy Pelosi, introduced the “Public Integrity in Financial Prediction Markets Act of 2026.” The legislation formally seeks to prohibit federal officials, Congressional employees, and executive agency staff from participating in wagers on platforms such as Polymarket or Kalshi, arguing that access to privileged information creates an unfair advantage.
The proposed bill responds to growing suspicions of insider trading and conflicts of interest, citing recent cases where suspiciously lucrative bets were placed on diplomatic events or the duration of press conferences. Promoters of the law contend that allowing those with the power to influence outcomes to participate in these prediction markets is an unacceptable risk to public ethics, comparing this activity to the use of material non-public information in the stock market.
The next step is to monitor the bill’s progress in Congress and the reaction from prediction market platforms, which defend their technology as tools for informational efficiency.
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