# U.S. Representative Seeks Prediction Market Ban for Federal Officials

*Author: Jack Inabinet*
*Published: Jan 5, 2026*
*Source: https://www.bankless.com/read/news/u-s-representative-seeks-prediction-market-ban-for-federal-officials*

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Representative Ritchie Torres (D-NY) is rallying support for the Public Integrity in Financial Prediction Markets Act of 2026. The bill seeks to bar government officials from using insider information to profit from prediction markets.

### What's the Scoop?
- **Insider Edge:** Government officials may have advanced knowledge of events before they occur. These privileged insights could be unfairly monetized by using prediction markets to front run the outcome of an event.
- **Trading Ban:** Representative Torres' three-page bill seeks to ban elected federal government officials, political appointees, and employees of Executive branch agencies from using non-public information to place bets on prediction market platforms.
- **Recent Example:** Immediately prior to the kidnapping/arrest of Venezuelan Nicolás Maduro, a Polymarket user bet $30k that Maduro would be ousted by the end of January and netted over $400k in profit. The Torres bill expressly seeks to ban such behavior. 
- **Unclear Goal:** In a [comment](https://www.axios.com/2026/01/05/venezuela-polymarket-prediction-insider-trading) to Axios, a Kalshi spokesperson noted that their prediction market already bans insider trading and is regulated by the CFTC, making it unclear what that bill would accomplish.

> NEW -- RITCHIE TORRES (D-N.Y.) will introduce a bill on this.Bill will be called the Public Integrity in Financial Prediction Markets Act of 2026Description, per a source:This bill prohibits federal elected officials, political appointees, and Executive Branch employees… [https://t.co/eZZ9BmAMgJ](https://t.co/eZZ9BmAMgJ)— Jake Sherman (@JakeSherman) [January 3, 2026](https://twitter.com/JakeSherman/status/2007497192974459372?ref_src=twsrc%5Etfw)