Rep. Gabe Vasquez Champions Effort To End Insider Trading By Federal Employees Using Prediction Markets

WASHINGTON, D.C. – U.S. Representative Gabe Vasquez (NM-02) reaffirmed his commitment to rooting out Washington corruption by banning public officials from insider trading on prediction markets. Rep. Vasquez led a letter pressuring the Commodity Futures Trading Commission (CFTC) and the Office of Government Ethics (OGE) to ban federal employees from using insider knowledge to profit on prediction markets. 

The Associated Press reported that a group of new predication market accounts made highly specific bets on the U.S.-Iran ceasefire on April 7, resulting in hundreds of thousands of dollars in profits — even though federal law prohibits government employees from using sensitive non-public information for personal financial gain. 

“Given the exponential growth in prediction market trading, rising evidence suggesting possible governmental insider trading in prediction markets, and potential confusion surrounding existing law in this area, we ask that the CFTC and OGE issue guidance reminding federal employees of their existing legal obligation to refrain from using their insider governmental information to profit from prediction market trades,” wrote the members. “CFTC should ensure that federal employees understand existing restrictions on prediction market insider trading.”

Rep. Vasquez has been a leader in the fight to hold Washington accountable and crack down on insider trading. Last week, he pressed the CFTC to close a loophole allowing prediction markets to operate unregulated nationwide outside of the regulated markets for tribal and state-regulated gaming. He also recently co-sponsored the Public Integrity in Financial Prediction Markets Act to officially ban public officials from insider trading on prediction markets.

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