A U.S. lawmaker has moved to curb prediction market participation among elected officials, citing concerns over speculative behavior. The push follows high-profile trades tied to political figures, prompting debate about ethics and transparency in crypto-linked financial platforms.

The proposed legislation targets a growing trend where public servants have placed bets on prediction platforms, raising questions about conflicts of interest and market integrity. Supporters argue that stricter rules would prevent elected representatives from leveraging insider information or political influence for personal financial gain.

This regulatory move reflects broader scrutiny of prediction markets—once niche platforms for forecasting, now increasingly mainstream as blockchain technology expands their reach. The bill would establish clearer boundaries on what government officials can do on these platforms, potentially setting a precedent for future policy.

The timing highlights tensions between innovation in crypto markets and traditional governance standards. As prediction markets gain prominence in Web3, questions about their regulation and use cases among public figures will likely intensify.