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Story: Republican Bill Targets Prediction Market Insider Trading but Leaves White House Out

By Dan Saada

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Who's In, Who's Out. White House officials are excluded from the ban entirely. So are members of Congress.

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The Gaps Are Already Getting Attention. The exclusion of White House officials has sparked real debate about what the bill is actually…

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What Happens Next. The proposal still has to clear further legislative review before it goes anywhere near becoming…

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A Republican lawmaker wants to ban insider trading on policy prediction markets. The bill is narrow by design — and that narrowness is already drawing fire.

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The proposal takes direct aim at people with privileged access to upcoming policy decisions who might use that knowledge to profit on platforms like Kalshi or Polymarket.

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White House officials are excluded from the ban entirely. So are members of Congress. That's not a minor carve-out — that's a pretty significant chunk of the people who'd…

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The logic seems to be a targeted approach: go after the clearest cases of policy-adjacent insider trading without trying to regulate every corner of how government officials…

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Some observers think the legislation could struggle in its current form. The selective application raises fairness questions that aren't easy to dismiss.

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Related: Congress Members Could Lose Prediction Market Profits Under Steils $2,000 Fine Bill

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Prediction markets have grown fast. They've moved from niche corners of the internet into mainstream financial conversation, and regulators have had a hard time keeping pace.

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The concern about insider trading on these platforms isn't new. It's been circulating since political prediction markets started gaining real volume.

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But solving it halfway is its own kind of problem.

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Stakeholders across the prediction market industry are watching closely. Any amendments that broaden the bill's scope could reshape how these platforms operate, particularly for…

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It's unclear yet whether the bill's sponsors are open to expanding coverage to White House officials. The source didn't specify any statements from the bill's author on that point.

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More context: Digital Asset Market Clarity Act Targets Fragmented U.S. Crypto Oversight

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