Rep. Torres To Target Insider Trading On Prediction Markets After... (2026)
A $400,000 Polymarket wager tied to Maduro’s capture has prompted Ritchie Torres to propose legislation restricting insider trading on political prediction markets.
US Representative Ritchie Torres is preparing to introduce legislation aimed at curbing insider trading on prediction markets, following scrutiny around a highly profitable wager tied to the sudden capture of Venezuelan President Nicolás Maduro.
In a Sunday post on X, Punchbowl News founder Jake Sherman said Torres plans to introduce the Public Integrity in Financial Prediction Markets Act of 2026. The bill would prohibit federal elected officials, political appointees and executive branch employees from trading prediction market contracts linked to government policy or political outcomes when they have nonpublic information through their official duties.
“The restriction applies to buying, selling, or exchanging prediction market contracts tied to government policy, government action, or political outcomes on platforms engaged in interstate commerce,” Sherman said, citing a source familiar with the matter.
The bill mirrors existing insider trading standards in traditional financial markets but would extend them to the prediction market sector.
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The proposal comes days after a newly created account on Polymarket placed roughly $32,000 on a contract predicting Maduro’s removal from power by Jan. 31, 2026. Hours later, US forces reportedly captured the Venezuelan leader, sending the contract to settlement and netting the trader more than $400,000 in profit.
The account had limited prior activity, with the Maduro trade accounting for the vast majority of its gains, raising more suspicions about whether someone might have exploited political or military information through the prediction platform.
In response to Sherman’s post, Kalshi’s press relations account said its rules prohibit insiders or decision-makers from trading on material nonpublic information.
Related: Fed rate cuts in 2026 could drive retail back to crypto: Clear Street
Source: CoinTelegraph
