Nancy Pelosi-led prediction market regulation bill bans federal employees from insider trading

MevHunter · 2026-01-28T04:10:40+00:00

On January 10, the U.S. Congress proposed a new bill aimed at banning prediction market trading using insider information by government officials, led by Representatives Richie Torres and Nancy Pelosi. The bill seeks to enhance public integrity and trust by preventing elected officials and staff from exploiting non-public information for personal gain in prediction markets. It marks a significant step towards regulating U.S. prediction markets and reflects growing concerns about financial accountability in politics.

MevHunter

2026-01-28 04:10:40

Abstract generation in progress

The U.S. Congress has officially proposed a new bill to prohibit predictive market trading that utilizes internal information from government officials on January 10th. Led by Democratic Representative Richie Torres of New York and former House Speaker Nancy Pelosi, this “Public Integrity Act for Financial Prediction Markets of 2026” demonstrates a commitment to eradicating political misconduct.

Regulation of Insider Trading by Federal Officials

The core of this bill is to directly prohibit elected federal officials, politically appointed government employees, and congressional staff from speculating in prediction markets based on non-public information accessible through their official duties. It particularly targets trading in prediction market contracts related to government policy announcements, administrative actions, and political outcomes. Major Democratic figures, including Nancy Pelosi, believe such regulations are essential to prevent conflicts of interest among public officials.

Policy Signal for Restoring Public Trust

The scope of regulation proposed by the bill is very broad. It includes all federal officials who possess or reasonably access non-public information through their official duties, banning all trading activities related to government policies, actions, and political outcomes in prediction markets. The aim is to prevent practices where public officials leverage insider information for unfair gains.

The Beginning of Enhanced Transparency in Prediction Markets

The introduction of this bill indicates that a regulatory framework for U.S. prediction markets is being established. Nancy Pelosi’s leading role suggests increasing concern within the Democratic Party regarding fiscal responsibility and public integrity. Industry outlets such as PANews also view this bill as a significant advancement in the U.S. financial oversight system.

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