U.S. Lawmakers Propose Bill to Ban Insider Trading in Prediction Markets

U.S. lawmakers have introduced the "Preventing Real-Time Exploitation and Deceptive Insider Trading Act," aiming to prohibit the President, Congress members, and senior government officials from placing bets on prediction markets. According to PANews, this legislation also extends to their spouses and family members. Violators would face a penalty of 10% of the total contract value and be required to forfeit all profits. The introduction of this bill comes as U.S. legislators and regulators intensify scrutiny of prediction markets, particularly those involving political, war, and sports contracts on platforms like Kalshi and Polymarket. Previously, two Democratic lawmakers proposed the "Prohibition of Sensitive Actions and Federal Functions Events Trading Act."