US Democrats are urging warnings to federal officials against insiders betting on prediction markets.

PANews reported on March 31 that, according to CoinDesk, more than 40 U.S. Congressional Democrats, including Senators Elizabeth Warren and Cory Booker, jointly wrote to the Commodity Futures Trading Commission (CFTC) and the Office of Federal Ethics, requesting clear guidance for government employees to be issued, reminding them that trading in prediction markets using non-public information is illegal and should be prohibited. The letter points out that several prediction market contracts involving government and military operations have recently seen suspicious trading, potentially involving insider information. The Democrats emphasize that the CFTC has classified prediction market contracts as regulated derivatives, and that government officials using official information to trade clearly violates federal law.