Over 40 Democrats in the U.S. House and Senate signed a letter to top administration regulators and ethics officials on Monday asking for governmentwide training on insider trading in prediction markets.
The letter to the Commodity Futures Trading Commission and the Office of Government Ethics comes after weeks of increasing scrutiny regarding potential insider trading by government employees using prediction markets like Polymarket and Kalshi.
The letter highlights concerns that federal employees may have used insider knowledge to make hundreds of thousands of dollars in profit from trades relating to the capture of Nicolás Maduro, the death of Iran’s Supreme Leader Ali Khamenei and the length of White House press conferences. To date, no federal employee has faced federal charges related to insider trading on event-driven news.
“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
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