BlockBeats News, January 4th, according to The Block, Punchbowl News founder Jake Sherman revealed on Saturday that U.S. Congressman Ritchie Torres will introduce legislation titled the “2026 Financial Forecast Market Public Integrity Act,” aimed at combating potential insider trading on prediction market platforms.
The bill is reportedly set to prohibit federally elected officials, political appointees, and executive branch employees from trading in prediction market contracts related to government policy or political outcomes when they possess or could reasonably obtain significant nonpublic information due to their official duties.
In the comments section of Sherman’s related post, the public relations account of prediction market platform Kalshi responded, stating that its platform rules explicitly prohibit insiders or decision-makers from trading using significant nonpublic information.
The introduction of this bill follows a trading activity involving a newly created account on Polymarket: hours before U.S. President Trump announced the nighttime military operation to arrest Venezuelan President Maduro, the implied probability of related contracts on Polymarket had seen an unusual surge. An account invested about $32,500 and made over $400,000 in profits with a return rate of over 1200% after the confirmation of Maduro’s arrest news. This account had previously only participated in predictions related to U.S. intervention in Venezuela.
