Democrats press Trump admin on prediction markets |
Democrats press Trump admin on prediction markets
Democrats press Trump on prediction market insider trades
More than 40 Democratic lawmakers are pressing the Trump administration to provide guidance underscoring that federal employees cannot use nonpublic information to trade on prediction markets.
Several well-timed wagers on recent events, such as the administration’s ouster of Venezuelan President Nicolás Maduro and U.S. airstrikes on Iran, have sparked suspicions of insider trading.
The Democratic lawmakers noted that federal employees are barred by law from using nonpublic information obtained through their work to trade on commodities markets.
Given that the CFTC has argued it has jurisdiction over prediction markets, they urged the agency to “ensure that federal employees understand existing restrictions on prediction market insider trading.”
“In short, given the exponential growth in prediction market trading, rising evidence suggesting possible governmental insider trading in prediction markets, and potential confusion surrounding existing law in this area, we ask that the CFTC and OGE issue guidance reminding federal employees of their existing legal obligation to refrain from using their insider governmental information to profit from prediction market trades,” they wrote Sunday.
The lawmakers are also seeking a staff-level briefing on whether the two agencies have offered any guidance on the issue, investigated reports of potential insider trading or taken steps to detect or prevent such practices.
As prediction markets have increasingly faced heat from lawmakers over insider trading concerns, they have sought to step up their own restrictions.
Kalshi said earlier this month that it was launching “new technological guardrails” to block politicians, athletes and other relevant figures from trading in certain markets.
Polymarket also unveiled “updated market integrity rules” clarifying prohibited insider trading conduct, including trading on stolen confidential information and illegal tips and by those who can influence the outcome of an event.
But lawmakers have remained skeptical, with Rep. Alexandria Ocasio-Cortez (D-N.Y.) dismissing the changes as “absolutely not enough.”
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Key business and economic news with implications this week and beyond:
Delaware judge reassigns multiple Musk cases after accusations of bias
A Delaware judge has reassigned several cases related to Elon Musk after the tech mogul accused her of bias over a LinkedIn post and called for her recusal.
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Eight in 10 Americans are concerned about artificial intelligence, according to a new poll.
Air Canada CEO to quit amid backlash over LaGuardia crash response
The CEO of Air Canada will retire later this year following backlash over his condolence message after a deadly crash involving one of the airline’s planes at New York’s LaGuardia Airport.
Business and economic news we’ve flagged from other outlets:
401(k) alternative asset rule proposed by Labor Department (CNBC)
Chromebook Remorse: Tech Backlash at Schools Extends Beyond Phones (NYT)
Opinions related to business and economic issues submitted to The Hill:
Gambling is entertainment — taxpayers shouldn’t foot the bill for losses.
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You’re all caught up. See you tomorrow!
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