WASHINGTON, D.C. — More than 40 Democrats in the U.S. House and Senate signed a letter asking the Commodity Futures Trading Commission and the Office of Government Ethics to issue governmentwide training to prevent federal employees from using insider information to profit on prediction markets. The letter, organized by Sen. Elizabeth Warren, raised concerns that federal employees may have used insider knowledge to make hundreds of thousands of dollars in profit from trades related to the capture of Nicolás Maduro, the death of Ali Khamenei, and the length of White House press conferences.

"It's not fair for anyone, especially federal officials, to use inside information when betting on prediction markets," Warren said. "Donald Trump's CFTC shouldn't let public officials get away with rigging prediction markets against working people."

The letter asked the CFTC and OGE whether the commission has investigated reports of insider trading on prediction markets by federal employees and what steps it will take to improve detection and prevention of such trading. "Given the exponential growth in prediction market trading, rising evidence suggesting possible governmental insider trading in prediction markets, and potential confusion surrounding existing law in this area, we ask that the CFTC and OGE issue guidance reminding federal employees of their existing legal obligation to refrain from using their insider governmental information to profit from prediction market trades," the letter stated.

Federal employees are prohibited by the Commodities Exchange Act and the STOCK Act from entering into futures contracts or similar trades using nonpublic information gained from their government postings. Prediction markets use futures contract mechanisms to allow participants to bet on whether certain events will occur. No federal employee has faced federal charges related to insider trading on event-driven news.

Among the signatories were Sens. Kirsten Gillibrand, Jeff Merkley, and John Hickenlooper, as well as Reps. Salud Carbajal, Seth Moulton, and Betty McCollum.

White House spokesman Kush Desai said, "All federal employees are subject to government ethics guidelines that prohibit the use of nonpublic information for financial benefit." Desai added, "However, any implication that Administration officials are engaged in such activity without evidence is baseless and irresponsible reporting."

The CFTC, which oversees futures contracts, is separately seeking public feedback on potential new regulations to address prediction market betting. David Miller, who was named the commission's enforcement chief earlier this year, said insider trading on prediction markets will be one of his top five enforcement priorities. "A myth has spread that insider trading is permissible, or even encouraged, in the prediction markets," Miller said. "These comments all suggest that insider trading is an important and acceptable part of the prediction market ecosystem. Not so."

Miller said the commission has the capacity to pursue cases. "We have sufficient personnel and resources. That being said, we are hiring," he said.