Democrats press Trump admin on prediction markets

Democrats press Trump on prediction market insider trades 

More than 40 Democratic lawmakers are pressing the Trump administration to provide guidance underscoring that federal employees cannot use nonpublic information to trade on prediction markets.

Several well-timed wagers on recent events, such as the administration’s ouster of Venezuelan President Nicolás Maduro and U.S. airstrikes on Iran, have sparked suspicions of insider trading.

The Democratic lawmakers noted that federal employees are barred by law from using nonpublic information obtained through their work to trade on commodities markets.

Given that the CFTC has argued it has jurisdiction over prediction markets, they urged the agency to “ensure that federal employees understand existing restrictions on prediction market insider trading.”

“In short, given the exponential growth in prediction market trading, rising evidence suggesting possible governmental insider trading in prediction markets, and potential confusion surrounding existing law in this area, we ask that the CFTC and OGE issue guidance reminding federal employees of their existing legal obligation to refrain from using their insider governmental information to profit from prediction........

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