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[U.S. Lawmaker Proposes Legislation to Restrict Insider Trading in Prediction Markets] U.S. Representative Ritchie Torres plans to introduce the '2026 Prediction Market Public Integrity Act,' which aims to prohibit federal elected officials, political appointees, and executive branch employees from trading prediction market contracts related to government policies or political outcomes when they possess or have access to significant non-public information. The legislative background stems from an incident where, prior to U.S. President Trump announcing the U.S. military's capture of Venezuelan President Maduro, the implied probability of related contracts on Polymarket rose abnormally. One account turned an investment of approximately $32,500 into over $400,000 in profits, achieving a return rate of over 1,200%. Kalshi's public relations account responded, stating that its platform rules already prohibit trading based on significant non-public information. Torres' office and Polymarket have yet to comment on the details of the legislation.