New York Consultant Ritchie Torres, with the backing of greater than 30 different Democrats within the Home of Representatives, has launched laws following a Polymarket person netting $400,000 on a guess associated to the removing of then-Venezuelan President Nicolás Maduro.
In a Friday discover, Torres mentioned he had launched the Public Integrity in Monetary Prediction Markets Act of 2026.
In keeping with the New York consultant, the invoice would prohibit “federal elected officers, political appointees, Government Department workers, and congressional workers from shopping for, promoting, or exchanging prediction market contracts tied to authorities coverage, authorities motion, or political outcomes after they possess materials nonpublic data or may fairly get hold of such data via their official duties.”
“Essentially the most corrupt nook of Washington, DC might be the intersection of prediction markets and the federal authorities — the place insider buying and selling and self-dealing are now not imagined dangers however demonstrated risks,” mentioned Torres. “We ignore this plain-sight corruption at our personal peril.”
The invoice got here lower than per week after a Polymarket account positioned a $32,000 guess on a contract predicting that Maduro could be faraway from energy by Jan. 31. US President Donald Trump introduced on Saturday that US forces had entered Venezuela and captured Maduro to face prison prices in New York.
Associated: Polymarket person who gained $400K on Maduro ouster guess quietly disappears
The guess, which netted the unknown person greater than $400,000, raised considerations over insider buying and selling on the platform. In introducing the invoice, Torres signaled that permitting an elected official to make use of platforms like Polymarket or Kalshi may incentivize him to “personally push insurance policies that line his pockets.”
“Simply as Donald Trump has been utilizing crypto to counterpoint himself and his household, there may be cause to worry that Trump or his associates may do the identical in the case of prediction markets,” mentioned Torres. “No elected official is elected to revenue from elected workplace.”
Cointelegraph reached out to Polymarket for touch upon the invoice, however had not acquired a response on the time of publication.
US Senate to handle market construction invoice subsequent week
As Torres’ invoice is taken into account within the Home, lawmakers within the Senate are anticipated to carry a markup on digital asset market construction laws.
The invoice, handed because the CLARITY Act within the Home in July and known as the Accountable Monetary Innovation Act within the Senate, is predicted to be one of the crucial complete items of laws affecting the crypto trade by altering the regulatory roles of the Commodity Futures Buying and selling Fee and Securities and Change Fee.
Senate Banking Committee Chair Tim Scott mentioned the committee will maintain a markup of the market construction invoice on Thursday, doubtlessly advancing it to a flooring vote.
Journal: When privateness and AML legal guidelines battle: Crypto tasks’ inconceivable selection