#创作者冲榜 California takes regulatory action on prediction markets: officials prohibited from using insider information to participate

BlockBeats info, March 28 — California Governor Gavin Newsom signed an executive order explicitly banning state officials from using "non-public information" to trade or assist others in profiting within prediction markets. The regulation covers mainstream platforms such as Polymarket, Kalshi, and others.
The order stipulates that all gubernatorial appointees are prohibited from using confidential information obtained through their official duties to place bets, nor from helping family members, business partners, or others profit through related information. The aim is to fill existing ethical regulatory gaps and curb "insider betting" behaviors.
This regulatory tightening comes amid recent controversies over "precise betting" in prediction markets, including traders profiting hundreds of thousands of dollars before major geopolitical events, raising widespread concerns about government insider information leaks and conflicts of interest.
Newsom stated, "Public service should not be a quick path to wealth," emphasizing the need to draw clear red lines against behaviors that leverage public authority for private gain. Currently, the order is in effect immediately, marking the beginning of increased compliance constraints by US local governments on prediction markets and stricter industry regulation.