California has banned public officials from using insider information to bet on prediction markets.

California Bans Officials from Using Non-Public Info in Prediction Markets

California is tightening the rules for public officials. Governor Gavin Newsom signed an executive order on March 27th—N-4-26—that bars appointed officials from using non-public information gained on the job to profit in prediction markets.

The ban also covers helping spouses, children, or other related parties do the same. Why the move? Recent cases have popped up involving insider trading in prediction markets tied to geopolitical events. That caught regulators' attention. The state says the goal is to strengthen ethics, protect public trust, and keep officials focused on the public good.