30 Congressmen back bill to block political insider trading after Maduro Polymarket controversy

Thirty members of Congress have backed a bill that would prevent federal officials and political staffers from using prediction markets that could be influenced by inside information.

After an anonymous Polymarket user cashed out more than $400,000 on a transaction related to the operation to impeach Venezuelan President Nicolás Maduro, concerns were raised that the bet had been placed using inside information. Now, in a statement viewed by ReadWrite, Rep. Ritchie Torres introduced the Public Integrity in Financial Forecasting Markets Act of 2026 in the House of Representatives, garnering support from 30 members of Congress.

THE Invoice would prohibit federal elected officials, political appointees, executive branch employees, and congressional staff from buying, selling, or trading prediction market contracts related to government policy, government action, or political outcomes when they have access to nonpublic information or could reasonably obtain such information through their work.

Kalshi CEO Tarek Mansour previously said he would support a bill that would ban government officials of the use of prediction markets.

Congressional support comes from the left

Support for the bill comes from Democrats, with co-sponsors including Speaker Emeritus Nancy Pelosi.

“The most corrupt corner of Washington, DC, may well be the intersection of prediction markets and the federal government, where insider trading and self-dealing are no longer imagined risks but demonstrated dangers,” said Rep. Torres. “We ignore this apparent corruption at our peril. Imagine for a moment that a member of the Trump administration took a gamble by predicting an event like the impeachment of Nicolas Maduro.

“As a government insider and participant in prediction markets, this individual would face a perverse incentive to personally promote policies that line his pockets. Profiteering in prediction markets by government insiders must be prohibited – period.”

Torres then specifically mentioned that President Donald Trump is “using crypto to get rich.” and his family“.

“There is reason to fear that Trump or his associates could do the same in predicting markets,” he continued. “No elected official is elected to profit from elected office. Government is not a for-profit business; it is a public trust. It does not belong to elected officials. It belongs to the people who elect them.”

In light of recent betting activity surrounding the capture of President Nicolas Maduro, I have serious concerns about @Polymarchéthe ability and willingness to comply @CFTC regulations.

I demand answers from the CEO of Polymarket @shayne_coplan regarding guarantees… pic.twitter.com/fHpjLpsykG

– Dina Titus (@repdinatitus) January 9, 2026

At the same time, Democratic Rep. In Tituswho lobbied for reform of gambling laws through it Fair Betting Actsent a letter to Polymarket CEO Shayne Coplan asking tough questions. She wants to know what safeguards the company has in place to stop insider trading and ensure its markets are managed fairly and transparently.

In her correspondence, she wrote: “In the days leading up to the capture of Venezuelan President Nicolas Maduro, Polymarket traders placed large bets on a contract predicting whether Maduro would leave office before the end of January 2026. One bet, reportedly for $32,000, generated profits in excess of $400,000. Although it remains unclear whether these bets constituted a crime Insider, their timing raises serious questions and highlights the need for rigorous monitoring, compliance and enforcement mechanisms.

Featured image: Polymarché / Wikimedia Commons licensed CC BY-SA 4.0

The position 30 Congressmen back bill to block political insider trading after Maduro Polymarket controversy appeared first on ReadWrite.

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