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Rep. Ritchie Torres Introduces Legislation on Prediction Markets - Ritchie Torres
governmentritchietorres.house.gov·ritchietorres.house.gov/posts/in-response-to-suspicious-p...
Relevant to AI safety governance discussions insofar as prediction markets are increasingly used for forecasting AI-related policy outcomes; this bill illustrates emerging regulatory scrutiny of these platforms and insider information risks.
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Importance: 35/100legislationnews
Summary
Rep. Ritchie Torres introduced legislation to prohibit government insiders from trading prediction market contracts tied to policy or political outcomes when they possess or could obtain material nonpublic information. The bill was prompted by a suspicious $30,000 Polymarket bet on Maduro's removal that yielded a $400,000 payout hours before a Trump administration operation. It targets federal elected officials, political appointees, Executive Branch employees, and congressional staff.
Key Points
- •A brand-new Polymarket account placed a $30K bet on Maduro's removal hours before a Trump admin operation, raising insider trading concerns and prompting the legislation.
- •The Public Integrity in Financial Prediction Markets Act of 2026 bars covered government officials from trading prediction market contracts tied to government policy or political outcomes.
- •The bill closes a regulatory gap where existing insider trading rules did not clearly extend to prediction markets, creating a potential corruption vector.
- •The legislation is co-sponsored by a broad coalition of House Democrats, indicating bipartisan concern about prediction market integrity.
- •This represents an early legislative response to the governance challenges posed by the rapid growth of real-money prediction markets like Polymarket.
Cited by 1 page
| Page | Type | Quality |
|---|---|---|
| Polymarket | Organization | 33.0 |
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In Response to Suspicious Polymarket Trade Preceding Maduro Operation, Rep. Ritchie Torres Introduces Legislation to Crack Down on Insider Trading on Prediction Markets Skip to main content Help the House Litigation and Response Committee protect hardworking Americans from federal disinvestment. SHARE YOUR STORY HERE
SHARE YOUR STORY HERE Resources / In the News Share on In Response to Suspicious Polymarket Trade Preceding Maduro Operation, Rep. Ritchie Torres Introduces Legislation to Crack Down on Insider Trading on Prediction Markets
30 Members of Congress join Rep. Torres in introducing the Public Integrity in Financial Prediction Markets Act of 2026
Jan 09, 2026 In the News
Last weekend, a brand new account on the prediction market site Polymarket placed a bet of over $30,000 that Venezuelan President Nicolás Maduro would be removed from office by the end of January. A few hours later, the Trump administration conducted its raid and capture of Maduro. The timing of this bet and the gargantuan $400,000 payout raised immediate suspicion that the individual behind the trade had inside knowledge of the administration’s planned operation. Widespread condemnation over the lack of safeguards preventing insider trading on prediction markets from government officials spread rapidly, including by Congressman Ritchie Torres (NY-15), who quickly announced legislation to address this opening for flagrant corruption.
Today, Rep. Torres is officially introducing the Public Integrity in Financial Prediction Markets Act of 2026 into the U.S. House of Representatives. The bill prohibits federal elected officials, political appointees, Executive Branch employees, and congressional staff from buying, selling, or exchanging prediction market contracts tied to government policy, government action, or political outcomes when they possess material nonpublic information or could reasonably obtain such information through their official duties.
The Public Integrity in Financial Prediction Markets Act of 2026 is co-sponsored by a wide coalition of House Democrats, including Reps. Alma Adams (NC-12), Wesley Bell (MO-01), Janelle Bynum (OR-05), Andre Carson (IN-07), Sean Casten (IL-06), Chris Deluzio (PA-17), Bill Foster (IL-11), Dan Goldman (NY-10), Pablo José Hernández (PR-AL), Steven Horsford (NV-04), George Latimer (NY-16), Mike Levin (CA-49), Sarah McBride (DE-AL), Kristen McDonald Rivet (MI-08), Morgan McGarvey (KY-03), Seth Moulton (MA-06), Del. Eleanor Holmes Norton (DC-AL), Speaker Emerita Nancy Pelosi (CA-11), Brittany Pettersen (CO-07), Josh Riley (NY-19), Terri Sewell (AL-07), Brad Sherman (CA-32), Darren Soto (FL-09), Greg Stanton (AZ-04), Suhas Subramanyam (VA-10), Shri Thanedar (MI-13), Rashida Tlaib (MI-12), Dina Titus (NV-01), Juan Vargas (CA-52), and Eugene Vindman (VA-07).
Prediction markets tied to political and policy outcomes raise serious ethical concerns when accessed by individuals with inside knowledge of government decision-makin
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