Catenaa, Thursday, January 08, 2026-Rep. Ritchie Torres, a New York Democrat, is preparing legislation to restrict federal elected officials, political appointees, and executive branch employees from participating in prediction markets on government policy, actions, or political outcomes.

The proposed “Public Integrity in Financial Prediction Markets Act of 2026” follows a Polymarket wager forecasting Venezuelan President Nicolás Maduro’s capture, which netted $400,000 and raised concerns over potential insider knowledge.

Torres’ office said the bill has been under development for some time, but recent events accelerated the introduction timeline.

The legislation aims to codify such conduct as illegal under federal law, without adding new enforcement mechanisms or penalties beyond existing regulations.

Torres serves on the House Financial Services Committee and participates in its digital assets-focused subcommittee, positioning him to address emerging risks in crypto-enabled prediction markets.

Prediction platforms like Polymarket and Kalshi have gained popularity, particularly during the 2024 U.S. election cycle, allowing participants to wager using crypto on political outcomes.

Advisory roles by figures such as Donald Trump Jr. at both platforms have drawn additional scrutiny.

The bill is intended as a first step to establish legal boundaries for officials’ participation in prediction markets, with further legislation expected as discussions continue.

Torres’ office emphasized that the proposal is meant to clarify rules, prevent conflicts of interest, and support integrity in government-related forecasting markets.

US prosecutors have charged Maduro with facilitating cocaine trafficking with the protection of Venezuelan law enforcement.

Maduro and his wife, Cilia Flores, pleaded not guilty on Monday.