#创作者冲榜 California Takes Action to Regulate Prediction Markets: Officials Prohibited from Using Insider Information to Participate

BlockBeats news, March 28 — California Governor Gavin Newsom signed an executive order explicitly banning state officials from using "non-public information" to trade in prediction markets or assist others in profiting, with regulations covering mainstream platforms such as Polymarket and Kalshi.
The order stipulates that all gubernatorial appointees are prohibited from using confidential information obtained through their official duties to place bets or help family members, business partners, and others profit through related information. The goal is to fill existing ethical regulatory gaps and curb "insider betting" behaviors.
This regulatory upgrade 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 the abuse of public authority for private gain. Currently, the order is in effect immediately, marking the beginning of increased compliance restrictions by local US governments on prediction markets and stricter industry regulation.