New York State Governor signs executive order restricting public officials from participating in prediction market insider trading.

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ME News message. On April 23 (UTC+8), New York Governor Kathy Hochul signed an executive order on Wednesday banning state government employees from using non-public information to trade on prediction markets or to help others profit from them, aiming to address growing concerns about “insider betting” in prediction markets. According to the executive order, all government officials and members of public institutions appointed by the governor or operating under the governor’s jurisdiction are prohibited from using any non-public information obtained in the course of their duties to seek benefits or avoid losses in prediction markets or similar services, and they are also forbidden from assisting others in related activities. In the document, the governor noted that the “rapid expansion of prediction markets” has drawn regulatory attention. The day before, Illinois Governor JB Pritzker also issued a similar executive order prohibiting state personnel from using non-public information to participate in prediction market betting. Meanwhile, prediction market platform Kalshi disclosed that it has launched an investigation into three insider trading cases involving candidates and has imposed fines and suspended trading for the individuals involved. One of the penalized individuals was Mark Moran, a Democratic primary candidate for the Virginia State Senate, who was punished for placing bets in his own campaign and said he “hopes to be discovered.” (Source: ODAILY)
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