Congressman proposes ban on staff trading prediction markets using insider info

Rep. Ritchie Torres filed a bill to curb insider use of prediction markets by federal officials and staff. The move extends a bipartisan push to police event-contract trading tied to nonpublic information.

The bill arrived in January 2026. Torres submitted it on Congress.gov as the Public Integrity in Financial Prediction Markets Act.

It targets federal elected officials, appointees, executive branch staff, and congressional staff. It bans trading on outcomes linked to information gained through official duties. Source.

Other lawmakers are moving too. Offices have begun self-imposed bans. CNBC highlighted Rep. Seth Moulton’s staff policy against using Kalshi and Polymarket. CNBC post.

The CFTC’s stance sits in the background. Agency signals on prediction markets have emerged on X, pointing to new steps and guidance. CFTC-related post.

On-chain settlement complicates compliance. Polymarket settles markets in USDC on Polygon, which bypasses conventional brokerage reporting.