Democrats press Trump administration on insider trading in prediction markets

More than 40 Democratic lawmakers, led by Sen. Elizabeth Warren of Massachusetts, sent a letter Sunday to the heads of the Commodity Futures Trading Commission and the Office of Government Ethics demanding that the Trump administration issue guidance prohibiting federal employees from using nonpublic information to trade on prediction markets. The letter reflects Democratic concern that administration officials could exploit access to confidential government information for personal financial gain in the growing market for political and economic prediction contracts. Prediction markets have surged in popularity and trading volume in recent months, creating new opportunities for potential insider trading that existing regulations may not adequately address. The Democrats are calling for explicit rules that would clarify the legal boundaries around federal employee participation in these markets and close potential loopholes. The request puts pressure on Trump administration officials to demonstrate commitment to ethics rules governing financial conflicts of interest.