The Governor of California has signed an executive order banning insider trading in prediction markets

California Governor Gavin Newsom signed an executive order prohibiting government-appointed officials from using non-public information obtained during their duties to engage in insider trading for profit in prediction markets, and expanded the ban to include their spouses, family members, and former business partners. The executive order specifies that public officials appointed by the governor may not use "confidential or non-public information" to bet on political or economic events related to their duties. Newsom stated that public service should not become a tool for profit and emphasized the need to draw a clear line between power and interests.