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The U.S. House of Representatives has taken new action. Representative Ritchie Torres plans to introduce the "Public Integrity Act for Financial Prediction Markets" in 2026, which primarily aims to restrict federal officials—prohibiting them from participating in political prediction market transactions when they possess significant non-public information.
This reflects the increasing attention to political prediction markets in the United States. As the crypto market develops, prediction market platforms have also become a hot track, attracting a large number of participants from Polymarket to other DEX-like prediction tools. However, regulatory issues have also surfaced—information asymmetry, conflicts of interest, insider trading risks, and more all require clear legal frameworks for regulation.
The significance of this proposal lies in its attempt to find a balance between protecting market fairness and participant rights. For the entire prediction market ecosystem, a clear regulatory framework may increase compliance costs, but it can also enhance the legitimacy and long-term sustainability of the market.