New legislation aims to prevent insider advantage and conflicts of interest in rapidly growing political betting markets
A group of Democratic lawmakers, including former House Speaker Nancy Pelosi, is backing new legislation designed to stop elected officials from profiting through political prediction markets. The proposal follows renewed scrutiny of betting activity linked to sensitive geopolitical events, raising concerns about insider access to nonpublic government information.
The proposed legislation, formally titled the Public Integrity in Financial Prediction Markets Act of 2026, was introduced by Representative Ritchie Torres of New York. The bill would prohibit federal elected officials, executive branch employees, political appointees, and now congressional staff, from placing bets on prediction markets tied to government policy, political outcomes, or official actions.
The move gained urgency after reports that a trader earned roughly $400,000 by wagering on the political fate of Nicolás Maduro, shortly before his capture by U.S. forces. The incident fueled speculation that material, nonpublic information may have influenced market activity.
Torres warned that allowing government insiders to participate in these markets creates dangerous financial incentives, potentially encouraging officials to influence policy decisions for personal gain. He argued that public trust requires a clear firewall between government power and speculative profit.
While the bill is currently backed by dozens of Democrats, its sponsors say bipartisan support remains possible as prediction markets continue expanding, particularly those linked to elections and global political events.
The legislation reflects growing efforts in Washington to address ethical risks emerging from the intersection of politics, finance, and digital betting platforms.
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