US lawmakers propose restricting prediction markets: Maduro incident triggers regulatory risks

2026-01-08 01:46:40

Source: PortaldoBitcoin Original Title: US Congressman Seeks to Limit Prediction Markets After Maduro’s Arrest Original Link: Democratic Congressman Ritchie Torres from the United States aims to restrict the use of prediction markets by political figures. Previously, there were reports of someone earning $400,000 on Polymarket from a prediction that Venezuelan President Nicolás Maduro would be arrested.

The congressman plans to introduce the “2026 Financial Prediction Market Public Integrity Act.” According to The Block, the proposal would prohibit federal election officials, political appointees, and administrative staff from betting on prediction markets involving “government policies, government actions, or political outcomes.”

A bet on Polymarket yielded $400,000 in profit, with a return on investment of 1200%. The bettor wagered that the Venezuelan leader would step down before January 31. This drew attention because the account was created at the end of December, made only four bets, and all bets were related to US military actions in Venezuela, raising alarms about potential leaks of confidential information.

On Saturday morning, US President Donald Trump announced that US troops had arrested Maduro and his wife, Cilia Flores. The US government claimed Maduro was “transporting large quantities of cocaine under the protection of Venezuelan police” and was involved in drug trafficking.

Maduro and his wife pleaded not guilty at their trial in New York on Monday.

Emergency Legislation

According to The Block, Torres’s spokesperson said the bill has been “in development for some time,” but the Venezuela betting incident highlighted the “urgent need to introduce it as soon as possible.”

The spokesperson stated that the bill is a first step: “The bill aims to explicitly codify that such behavior is illegal under federal law. At this stage, legislation does not include a standalone enforcement mechanism or additional penalties beyond existing ones.”

“This proposal is intended to be a starting point, and we look forward to refining it as political debates continue,” they added.

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