30 Democratic lawmakers in the US push for a ban on prediction markets? Polymarket insider trading scandal sparks a regulatory storm

【BlockBeats】The prediction market is causing trouble again. A wave of Democratic lawmakers in the U.S. Congress has decided to step in and regulate this wild field—30 individuals, including some well-known politicians, jointly support a new bill with the core goal of banning elected officials from engaging in political-related gambling on prediction markets.

How did this issue escalate? It all started with an account on Polymarket—someone was wildly betting on the arrest of the former President of Venezuela and ended up making $400,000. Sounds a bit terrifying, right? The market immediately exploded with concerns about insider trading.

To close this loophole, New York State Assemblyman Richie Torres officially submitted the “2026 Financial Prediction Market Public Integrity Act” on Friday. The name sounds very serious—and the bill’s purpose isn’t complicated: to ensure officials don’t use insider information to profit from prediction markets.

This incident reflects a reality: although prediction markets seem cutting-edge, the lack of regulation also brings significant risks. From this Polymarket event, it’s clear that without clear rules, advantages from information asymmetry can be easily exploited. The future development depends on how the U.S. Congress balances innovation and risk.