Congressman Seth Moulton Bans Staff from Prediction Markets
- Massachusetts Democrat Seth Moulton has prohibited his congressional staff from trading on prediction markets like Polymarket and Kalshi.
- The PREDICT Act, introduced by Reps. Adrian Smith and Nikki Budzinski, aims to extend similar restrictions to senior government officials.
- Violations of the PREDICT Act would incur a civil penalty of 10% of the transaction’s value, plus full disgorgement of profits.
- Prediction market analyst Dustin Gouker predicts more congressional offices will likely adopt similar bans.
Congressman Seth Moulton has implemented a policy banning his staff from engaging in prediction markets due to concerns over insider trading risks. This move aligns with the bipartisan introduction of the PREDICT Act, which seeks to impose similar restrictions on senior government officials to prevent exploitation of non-public information for personal gain.
With lawmakers intensifying scrutiny on insider trading in prediction markets, platforms like Polymarket and Kalshi are enhancing their anti-insider trading measures to address these concerns effectively. (Source)
