Business · Wired
New York Bans Government Employees from Insider Trading on Prediction Markets
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New York has banned state employees from using insider information to trade on prediction markets.
Key facts
- While Donald Trump and DC Republicans turn a blind eye to the ethical Wild West they’ve created, New York is stepping up to lead by example and stamp out insider trading
- California Governor Gavin Newsom issued a similar executive order last month, banning Golden State employees from prediction market insider trading
- At Kalshi, insider trading violates their rules, and they enforce them when they catch insiders,” Kalshi spokesperson Elisabeth Diana says
- According to CNN, the White House recently warned executive branch staff not to trade on prediction markets
Summary
“Getting rich by betting on inside information is corruption, plain and simple,” Hochul said provided to WIRED. The order was not spurred by any specific insider trading incidents involving New York state employees. This is the latest in a wave of initiatives meant to curb insider trading on prediction markets like Kalshi and Polymarket, the two most popular of these platforms in the United States. In addition to these executive orders, Congress has also introduced several bills intended to curb market manipulation and corruption in the industry, including legislation barring elected officials from participating in prediction markets.