2026-01-04 01:57:54

U.S. New York State Democratic Congressman Ritchie Torres recently took a new step—he is preparing to introduce the "2026 Financial Prediction Market Public Integrity Act." In simple terms, this aims to close potential insider trading loopholes in prediction markets.

The core of the bill is straightforward: federal elected officials, political appointees, and employees of the executive branch who possess or can obtain significant non-public information through their official duties cannot trade in prediction market contracts related to government policies or political outcomes. In other words, if you know a policy is about to be implemented or a decision is about to be announced, you cannot exploit this information advantage in prediction markets.

This reflects a real issue— as prediction markets grow in size, regulators are beginning to focus on potential information asymmetry and conflicts of interest. In the crypto space, prediction markets have become investment tools for many traders, but in an unregulated environment, gray areas can easily emerge. Torres's proposal, to some extent, marks the beginning of traditional financial regulatory frameworks extending into emerging crypto applications.

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Degentleman

· 01-07 01:36

Haha, finally someone is taking care of this. Officials' insider trading has indeed been playing very skillfully in the prediction markets. Honestly, it's quite normal for regulators to come in; prediction markets are inherently easy to manipulate. Now they’re starting to clamp down. Curbing insider trading is good, but don’t ruin the entire prediction market, everyone. This guy is pretty quick; they’re already preparing legislation for 2026. Looks like they’re serious. Regulatory agencies have finally taken notice of prediction markets. They should have come earlier. The days of profiting from information asymmetry are probably coming to an end. But the problem is, how to regulate crypto prediction markets? That’s really uncertain. If officials can’t play, what about retail investors? How are the rules set? Prediction markets are fundamentally information games. Now that they’re trying to close loopholes, it feels like the entire ecosystem will have to change.

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BlockImposter

· 01-06 22:51

Haha, finally someone is going to take care of this. The officials used to make a killing in prediction markets and enjoyed it too much. Regulation is coming, but will it really be implemented? Do these politicians realize how deep their waters run? Prediction markets are fundamentally information games. Now that they want to stop officials from cheating, what about retail investors? They still get cut. If you ask me, Torres is just putting on a show. If they really wanted to be clean, they would have been clean long ago... Who does this law really constrain? In the end, it's just the same old trick. On the regulatory level, it seems strict, but in practice, it's always lax and loose.

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TokenomicsTherapist

· 01-06 03:00

Ha, now the bureaucrats will also be watching the prediction markets. It was about time to regulate them. --- The insiders' good days are coming to an end, but will this bill really be implemented? --- Prediction markets should have rules to begin with, otherwise, what's the difference from gambling... --- New York State is trying new tricks again. The key question is who will supervise the officials themselves. --- Torres has finally seen through it; the scheme of making money from information asymmetry in prediction markets needs to be stopped. --- If this really passes, how many officials will be freaking out? --- Crypto regulation is moving forward again. It feels like 2026 will be very interesting. --- Basically, it's just fear that officials will use non-public information to cut the leeks. The loopholes were indeed big before. --- Once prediction markets become popular, this kind of thing is bound to happen sooner or later. --- It should support compliance, but how to regulate is the real challenge.

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BrokenDAO

· 01-04 02:28

Ha, another bill to patch loopholes. Sounds good, but those in real power will always find ways around what the law can't cover.

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0xInsomnia

· 01-04 02:26

Ha, now the officials' "information arbitrage" is doomed, it was about time to regulate it. --- Prediction markets have really become a cash cow for the powerful, no wonder legislation is needed. --- Insider trading has always been their game, crypto leaves them nowhere to hide. --- Regulation is coming, but the old guys probably ran away early. --- Plugging the loopholes? I think it's because they're afraid ordinary people might also join the game. --- Torres really playing here, finally someone is going to regulate prediction markets. --- The key is enforcement, otherwise it's just another worthless paper. --- This wave was probably triggered by a major insider trading incident. --- The transparency of crypto is actually forcing traditional finance to keep up. --- Feels a bit late now, how long has this been going on?

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WalletsWatcher

· 01-04 02:19

Ha, finally someone is going to handle this. Insider trading is playing quite cleverly in prediction markets. Torres's move still has some merit, but actually implementing it? Very difficult. The biggest fear in the crypto space is this kind of regulatory extension, which might lead to being shut down completely. The day the gray areas disappear will mark the true arrival of the "compliance era." Now those who rely on information asymmetry to make a living will have to find ways out. Regulation is a good thing, but if it becomes excessive, it might actually weaken the entire market. Prediction markets are fundamentally about information battles. Now they’re directly cutting off the source? Wait, does this mean the good days for some big influencers and insiders are coming to an end? It feels like this is the real "anti-monopoly," breaking information privileges. It's easy to say, but can these covert transactions be tracked during enforcement? That’s the key.

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DegenWhisperer

· 01-04 01:59

Wow, now even officials want to predict the market and manipulate it, this is getting serious. Torres is really trying to patch the loopholes, but the question is... who will actually get caught? Here we go again, regulators want to trap crypto, it’s never-ending. Honestly, information asymmetry is the soul of market prediction. Now they want to cut it off? How else can this business operate? Wait, can this bill really pass? It feels like those paper-thin threats that are actually useless in practice. Prediction markets are fundamentally an information game. If they want to eliminate the information advantage... isn’t that just laughable? The establishment’s desire to control everything truly has no end. Speaking of which, are platforms like Polymarket doomed? The insiders definitely need regulation, but this bill probably can’t really stop those who want to play. Crypto is being tamed step by step, which is a bit regrettable. If this passes, the bottom-tier traders will be the ones who suffer the most. Another regulation "for protection," but in reality, it’s just an expansion of centralized power. It feels like the wild days of prediction markets are coming to an end.

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