Overview
- Rep. Ritchie Torres said he will introduce the Public Integrity in Financial Prediction Markets Act of 2026 to bar federal officials from insider trading on prediction markets.
- Kalshi CEO Tarek Mansour publicly endorsed the proposal in a Wednesday LinkedIn post, saying the exchange already bans insider trading.
- Mansour said Kalshi's rules draw from New York Stock Exchange and Nasdaq standards and treat trading on material nonpublic information as a financial crime.
- He emphasized a distinction between regulated American platforms and unregulated offshore sites, arguing policymakers should not conflate them.
- Momentum for action followed reporting on a Polymarket user who earned over $400,000 on a trade placed hours before Nicolás Maduro's capture, and Business Insider reports Polymarket does not explicitly forbid insider trading.