The prediction market has recently encountered a major development. New York State Assemblymember Ritchie Torres introduced a new bill last Friday—the "2026 Financial Prediction Market Public Integrity Act." This proposal immediately garnered support from over 30 Democratic lawmakers, including former House Speaker Nancy Pelosi.

The core logic of the bill is straightforward: prohibit government personnel (officials, appointees, administrative staff, congressional staff) from using non-public information obtained through their positions to bet on policy directions and political outcomes in prediction markets. In other words, it aims to close the loophole that allows power to be exploited for personal gain.

This proposal did not come out of nowhere. Recently, a Polymarket user made $400,000 by betting that Venezuelan President Maduro would step down at the end of the month. This directly hit the market's nerve—could someone be using insider information to exploit prediction markets? If even government insiders can operate this way, the fairness of prediction markets would be fundamentally compromised.

Torres also made a clear statement: this loophole must be closed, or else some individuals might manipulate policies for personal financial gain, turning prediction markets into tools for monetizing power. Currently, the bill is still seeking support from Republicans, and its future depends on the attitudes of both parties.