At least 42 Democratic lawmakers have urged the Commodity Futures Trading Commission (CFTC) and the Office of Government Ethics (OGE) to issue warnings against federal employees using inside knowledge to trade in prediction markets.
The letter, addressed to CFTC Chair Mike Selig and OGE, cited "multiple incidents" raising concerns over possible insider trading. These included bets on Venezuelan leader Nicolás Maduro's capture and White House speech lengths.
Lawmakers argue the STOCK Act of 2012 prohibits such activity, as prediction market contracts are classified as derivatives under CFTC regulations.
The lawmakers seek a briefing by April 13, asking whether the CFTC has investigated or received reports of insider trading in these markets.
They also want details on current measures to prevent and detect such trades.
Source: Seth Moulton