Krishnamoorthi Presses Trump to Support Ban on Federal Officials Trading on Prediction Markets Ahead of China Summit

WASHINGTON - Congressman Raja Krishnamoorthi sent a letter to President Donald Trump on Tuesday urging him to publicly support prohibiting federal officials from participating in prediction markets or providing information to associates for use in prediction markets ahead of this week's summit with Chinese President Xi Jinping.

In the letter, Krishnamoorthi warned that sensitive nonpublic information tied to U.S.-China negotiations, tariffs, export controls, and geopolitical developments could create opportunities for insider trading and abuse of prediction markets.

"Given the enormous market sensitivity surrounding U.S.-China relations, trade negotiations, tariffs, export controls, and geopolitical developments, any nonpublic information concerning the summit could create substantial opportunities for improper financial gain, particularly in predictive markets," Krishnamoorthi wrote.

Krishnamoorthi also urged Trump to ensure officials, employees, advisors, contractors, and associates involved in the summit understand federal prohibitions on trading using material nonpublic information and the penalties for violating those laws.

The letter cites recent reporting regarding billions of dollars in unusually timed oil market wagers placed shortly before major U.S. policy announcements related to Iran, raising concerns about the misuse of privileged government information.

"I further urge you to publicly support prohibiting federal officials from participating in prediction markets or providing information to associates to participate in prediction markets," Krishnamoorthi wrote.

Krishnamoorthi also noted that the U.S. Senate recently unanimously passed a rule barring senators and Senate staff from trading on prediction markets.

"Senators unanimously agreed that the executive branch should establish similar restrictions," Krishnamoorthi wrote.

"The American people must have confidence that U.S. foreign policy is being conducted in the national interest - not used as an opportunity for private financial gain," Krishnamoorthi wrote.

The letter is available here.