Ban Insider Trading on Prediction Markets

Prediction markets are turning real-world crises into cash grabs — and Congress must ban insider trading before the next scandal hits.

Platforms like Kalshi and Polymarket let users bet on elections, wars, court decisions, corporate news, military action, and government policy. That means people with secret information can potentially profit before the public knows what is happening.

Regulators, prosecutors, and members of Congress are already raising alarms about prediction markets being used for insider trading, manipulation, and bets tied to sensitive national security events. If Congress waits, more insiders could exploit confidential information while everyone else plays by different rules.

Tell Congress: “Ban insider trading on prediction markets. Pass strong federal safeguards that prohibit trading on material nonpublic information, punish manipulation, and protect the public from corrupt event betting.”

No one should be allowed to cash in on classified briefings, private government deliberations, confidential corporate data, campaign strategy, military plans, or emergency decisions that can move a market overnight. When insiders profit from information the public cannot access, it is corruption — whether it happens on Wall Street or on a prediction market.

Congress has a clear path to act. Lawmakers can pass legislation requiring strict identity verification, suspicious-trading reports, conflict-of-interest rules, and real penalties for traders and platforms that enable abuse. They can also ban contracts tied to war, terrorism, assassinations, and other events where betting creates dangerous incentives.

The Senate has already banned senators and staff from trading on prediction markets. That is a start, but it is not enough. The same standards should apply across government, campaigns, contractors, corporations, and anyone with access to market-moving secrets.

Add your name now and demand Congress close this loophole before prediction markets become a playground for insiders, manipulators, and people trying to profit from public harm.

The petition to Congress reads: "Ban insider trading on prediction markets. Pass strong federal safeguards that prohibit trading on material nonpublic information, punish manipulation, ban dangerous event contracts, and protect the public from corruption, fraud, and abuse."