New York state employees are now forbidden from using insider information to trade on prediction markets. Governor Kathy Hochul signed an executive order today, stating that public servants should work for the people, not their own pockets.

This move follows similar orders in other states and a wave of legislative attempts to curb insider trading on platforms like Kalshi and Polymarket. While no specific incidents prompted this ban, Governor Hochul’s statement aims to ensure transparency and prevent the misuse of confidential information for personal gain.

California and Illinois have already taken steps, with Congress introducing bills that bar elected officials from participating in prediction markets. The White House has also warned its staff against trading on these platforms, despite not providing details about existing regulations.

Despite these measures, high-profile incidents on Polymarket involving geopolitical events have raised concerns. Kalshi and Polymarket have announced initiatives to combat insider trading, but critics argue that current efforts are insufficient. The Commodity Futures Trading Commission is actively investigating cases, though no arrests have been made so far.