The Governor of California signed an executive order prohibiting public officials from using insider information to participate in prediction markets.

On March 27, California Governor Gavin Newsom signed Executive Order N-4-26, explicitly prohibiting public officials appointed by the governor from profiting from non-public information obtained in the course of their duties in prediction markets, and prohibiting them from assisting their spouses, children, and other related persons in such activities. The order points out that recent cases of insider trading in prediction markets involving geopolitical events have raised regulatory concerns. The California government stated that this move aims to strengthen ethical constraints, maintain public trust, and ensure that public officials focus on the public interest.