Op-ed presses Congress to ban insider trading on prediction markets
An op-ed published June 2 argues that prediction markets are out of control and urges Congress to ban insider trading on event contracts, citing event contracts related to ongoing wars as examples of products that arguably violate current regulations yet remain actively traded online. Separately, Bitget News reported June 8 that Congress is advancing legislation to prohibit lawmakers from trading on crypto prediction markets, tightening ethical restrictions on legislators' financial activity in the sector amid crypto market volatility in early June 2026. The two developments converge on the same theme of restricting prediction market access for those with informational advantages — whether political or otherwise.
The op-ed adds public pressure for legislative action as DOJ prosecutors already pursue two active insider-trading cases against prediction market traders. Any congressional ban on lawmaker trading would narrow the regulatory gap between political and corporate information advantages, forcing platforms like Kalshi and Polymarket to build compliance programs for both classes of restricted traders or face parallel enforcement.