New York Representative Ritchie Torres introduces legislation to crack down on insider trading on prediction markets after a Polymarket user wins $400,000 on a bet regarding the removal of then-Venezuelan President Nicolás Maduro. Torres’ bill prohibits federal officials from participating in prediction markets with material nonpublic information.
A Polymarket account placed a $32,000 bet predicting Maduro’s removal, leading to concerns over insider trading as Trump announced US forces had captured Maduro. Torres warns of corrupt practices intersecting prediction markets and the government, stating no elected official should profit from their position.
US Senate to address digital asset market structure bill next week as House-passed CLARITY Act moves forward. The bill, known as the Responsible Financial Innovation Act in the Senate, aims to change regulatory roles of the CFTC and SEC. Senate Banking Committee Chair Tim Scott plans to hold a markup on Thursday.

Read more at Cointelegraph: US Lawmaker Introduces Bill to Ban Politically-Related Prediction Bets