A Maduro Bet, A Market Alarm: US Lawmaker Targets Trading Abuses
US Rep. Ritchie Torres said he will introduce legislation to curb what he and other lawmakers describe as possible insider trading on prediction markets, after a single, highly timed wager on Polymarket paid off when Venezuelan President Nicolas Maduro was captured Platform operators have long said their terms forbid trading on material nonpublic information, but critics say those rules are hard to police in real time. Some analysts and lawmakers argue that this episode shows a gap between written policies and effective oversight. Others warn against overreach that could stifle legitimate market activity used for forecasting and research.Market Reaction And Questions
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Investigations may look at the account’s origins and any links to people with privileged knowledge. Lawmakers, meanwhile, are pushing for clearer legal guardrails. If Congress moves quickly, new rules could reshape who may legally bet on political and national security events.
Featured image from AFP/Getty Images, chart from TradingView
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