Senate Bans Insider Trading in Prediction Markets

0:00On May 1st, a bipartisan bill from Senators Kirsten Gillibrand of New York, and Dave McCormick of Pennsylvania, aims to stop federal lawmakers, the President, Vice President, and top executive officials from betting on prediction markets, like Kowshi in Polymarket. The Senate just unanimously passed a resolution banning Senators and their staff from these trades, marking a quick win on ethics reform. This legislation pushes the Commodity Futures Trading Commission to review rules and crackdown on insider trading in these markets. It also lets the Commission block bets on war, violence, or terrorism when needed, all to keep things fair and stop officials from using inside info. 4. Profit Lawmakers like Gillibrand stress that elected officials should serve the public, not cash in on privileged knowledge. Recent cases highlight the issue, like a trader named Ganon Ken Van Dyke, who allegedly made over $400,000 on insider bets, and faces the first criminal charges on a U.S. event platform. He's pleaded not guilty.

1:04Kowshi also suspended and fined three political candidates caught trading. Prediction market CEOs are cheering the Senate move. Kowshi's tired Mansour called it a trust booster, noting they already blocked Congress members and enforce against insider deals. With the House next in line for a similar vote, this could set a new standard across government, ensuring markets stay clean for everyday folks. From across the country, powered by AI, this is U.S. News Today. I'm Corey with The Story.