2026-01-10 07:32:37

The US Congress is taking frequent actions. Democratic Representative Ritchie Torres from New York and former House Speaker Nancy Pelosi jointly introduced a new bill targeting an old issue—federal officials profiting from trading in prediction markets using their official positions. In simple terms, this means insider trading—using non-public information to place ahead bets—will be explicitly prohibited.

The logic behind this is clear: to prevent the collusion of power and money and to maintain market fairness. While prediction markets and similar emerging financial instruments attract many participants, they also expose potential conflicts of interest. If those in power can access undisclosed policy information and act on it in advance, how can ordinary investors compete?

For the market, such tightening of regulation often reshapes sentiment expectations. Investors need to pay attention to how these policy changes impact prediction markets and the broader financial markets. As information asymmetry is reduced, market pricing logic will also adjust accordingly.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

13 Likes

Reward
13
8
Repost
Share

Comment

0/400

TestnetFreeloader

· 11h ago

Another wave of regulatory crackdown on rug pulls. Can they really control those elites this time? I’m skeptical. Pelosi has even stepped in. This is really a big deal. Insider trading is banned, but retail investors still can’t turn things around. It’s still dominated by institutional players. Prediction markets are inherently a game of asymmetric information. Now that the spread has been compressed, making profits is even harder. Wait, will this bill pass? If it does, prediction markets might be completely shut down. Feels like more and more restrictions are coming, even monitoring this? The federal government is too idle. It’s basically just fear that someone will know the news earlier than them. They don’t want to share the cake. If this bill is truly implemented, the way prediction markets operate will have to be completely rewritten. They’ve really kept officials out, but that just gives more room for big capital. With the information gap gone, what’s the point of these trades anymore?

View OriginalReply0

NotAFinancialAdvice

· 01-11 22:53

I don't know what to say, anyway, these officials are just like this, banning this and banning that. Wait, this time it's surprisingly sincere; insider trading is disliked by everyone. The Americans finally did something. If this bill passes, the prediction market will have to be reshuffled, which is a bit期待. Another wave of regulation, retail investors are still the chives. Pelosi's support, it looks like they're serious this time. Nice words, but in the end, it's just a new way to harvest chives. The information gap compresses trading, making it less interesting. Is this a good thing or a bad thing?

View OriginalReply0

NFTHoarder

· 01-11 21:39

Here we go again, officials caught sneaking a bite this time in the prediction market pie Real power rent-seeking, what can ordinary people play with It should have been regulated earlier, now it's probably too late... with such a clear information gap advantage, who would dare to compete

View OriginalReply0

ChainPoet

· 01-10 08:02

Once again banning this and that, why not ban officials' salaries? The advantage of insiders' information for officials has long been an issue that should be regulated, but it's just hard to enforce. Prediction markets are inherently a game for the wealthy; ordinary people simply can't afford to play. Is the US closing loopholes or clearing obstacles for big capital? The real issue isn't the legislation, but who will enforce it. Information asymmetry compression? Laughable, it can never be fully compressed.

View OriginalReply0

MidsommarWallet

· 01-10 08:00

Once again, banning officials from making money—sounds nice, but in reality, it's just a power struggle. The big players have been making a fortune from prediction markets for a long time, and now they’re just thinking about legislation. The timing is perfect. With this new bill, retail investors will be even worse off; the information gap has been closed, and now no one wants to participate. The moat has been raised another level, but those who can truly profit are always just a select few. Prediction markets—do you think banning insider trading will make it fair? That's overthinking it.

View OriginalReply0

LoneValidator

· 01-10 07:56

To be honest, this bill is a bit late. Officials have been exploiting the system for so long, and only now do they think of banning it? Prediction markets are inherently information games. Those in power use insider information to manipulate, while retail investors are just the ones getting cut. If they actually ban it now, it might ironically benefit market fairness. But then again, will this bill really be enforced... I don't have much faith in the US system. Small investors are probably thinking now, does this mean they need to readjust their strategies?

View OriginalReply0

GhostAddressMiner

· 01-10 07:40

Once again, the same rhetoric... Banning insider trading? It should have been done long ago. The real issue is how to track the flow of funds that exit through mixers and cross-chain bridges, that's the key.

View OriginalReply0

RektRecorder

· 01-10 07:35

Haha, banning this and banning that again, they really think officials are fools. They've been playing all along. Insider trading is the same everywhere; it all depends on whether they catch you or not. Prediction markets are originally information games; now they want equality? Laughable. No matter how strict the legislation, it can't stop determined people. The tricks will only become more diverse. Ordinary retail investors still have the fate of chives; this time, it's just more covert. Pelosi's move is impressive; she only remembered legislation after filling her own stomach. When regulation tightens, the real opportunities are in the gray areas. Such news is mostly just a political show, really useless. U.S. officials: surface bans, covert operations, the art of differential treatment. The wealthy always have ways; laws are for the poor.

View OriginalReply0