The post US Democrats Demand Crucial Crackdown On Federal Worker Betting appeared on BitcoinEthereumNews.com.

WASHINGTON, D.C. – In a significant move to safeguard government integrity, more than 40 Democratic lawmakers have launched a crucial push for a sweeping ban on prediction market betting by all federal employees. This urgent call, detailed in a formal letter to key regulators, aims to close a potential loophole that could allow the misuse of sensitive information for personal profit on platforms like Polymarket and Kalshi. Consequently, this initiative directly addresses growing ethical concerns within the public sector. Democrats Push for Prediction Market Ban Led by prominent figures in both the House and Senate, the coalition formally submitted their request to the U.S. Commodity Futures Trading Commission (CFTC) and federal ethics authorities. The lawmakers’ core argument hinges on existing statutes that already prohibit government officials from using non-public information to profit from financial derivatives. They assert that prediction market contracts, which allow users to bet on real-world event outcomes, functionally represent a novel form of derivative. Therefore, they must fall under the same strict legal prohibitions. The letter explicitly names leading prediction market platforms, signaling a targeted regulatory approach. Furthermore, the legislators are demanding two specific actions from the involved agencies: New Explicit Guidelines: Formal rules that clearly prohibit federal workers from trading on event-based prediction markets. Clarified Legal Obligations: Updated ethics training and directives that outline these specific restrictions for all public sector employees. This regulatory push follows increased scrutiny of the prediction market industry, which has grown rapidly alongside cryptocurrency adoption. Many platforms now host markets on political events, economic indicators, and geopolitical developments—areas where federal employees often possess privileged insights. Historical Context and Legal Precedents The lawmakers’ initiative did not emerge in a vacuum. Reportedly, the letter was prompted by specific allegations regarding conduct during the previous administration. According to the correspondence, some officials within the…

---

Filed under: News - @ March 30, 2026 11:28 pm