Gavin Newsom Bans California Public Officials From Prediction Market Insider Trading
California has banned public officials and decision-makers from using inside information for personal gain on prediction markets. Governor Gavin Newsom’s executive order immediately prohibits both personal trading and using insider knowledge to benefit relatives or business partners. The action comes amid heightened scrutiny of insider trading on prediction platforms and follows recent federal legislation proposed by Democrats, including the BETS OFF Act, which targets markets related to war and sensitive events. Newsom and other Democrats cite concerns that individuals close to the Trump administration have exploited confidential information for profit. Recent cases highlighted include suspicious trades linked to the Venezuelan political crisis, Israelis trading on military secrets, and a YouTube video editor using insider knowledge for market bets. In response to increased attention and new regulations, major prediction market platforms such as Polymarket and Kalshi are tightening rules through stricter screening and new integrity measures to prevent insider trading.
