More than 42 Democratic lawmakers have reached out to the U.S. commodities regulator and the Office of Government Ethics, urging action against potential insider trading within prediction markets. Their letter, directed to Mike Selig, Chair of the Commodity Futures Trading Commission, highlights several troubling incidents that have raised concerns over federal employees exploiting inside information for trading.
The lawmakers are calling for comprehensive guidance across the executive branch to remind federal employees of their obligations under the law, particularly in relation to the STOCK Act established in 2012, which prohibits the use of nonpublic information for personal gain. Specific instances cited in the letter include bets on Nicolás Maduro's capture and trades linked to the potential invasion of Iran.
In light of these concerns, the group requests a detailed briefing by April 13 to address whether any investigations have been conducted regarding insider trading in these markets. Additionally, they seek clarity on the measures the CFTC is taking to prevent such activities among federal employees.