Ban wey dem put for insider trading for New York & Illinois don affect prediction markets

New York Governor Kathy Hochul and Illinois Governor JB Pritzker don sign executive orders to stop state workers from using non-public work-related info to make money for prediction markets. Hochul talk say “to get rich by betting on inside information na corruption,” and she paint the move as response to federal ethics wey no dey act. The orders ban state staff from placing prediction market bets—or helping others make profit—using confidential info. Punishment fit include firing and law enforcement action. New York’s EO 60 (dated April 23) mention suspicious activity for Polymarket, including one reported bet wey dem place shortly before news say U.S. military capture something related to Venezuela, wey allegedly make about $400,000 profit. E also mention abnormal trading patterns for Iran-related event contracts. This crackdown land amid ongoing U.S. regulatory wahala about who get jurisdiction over prediction markets. The article note past state actions involving Kalshi, disputes with Nevada regulators, and CFTC leadership wey dey argue say prediction markets suppose fall under federal control. With prediction market volumes reportedly reach record $2.36B per month in March, compliance pressure and legal uncertainty for operators—and headline risk for traders—fit rise. For crypto traders, immediate price impact on crypto assets likely small because na state-employee insider trading bans, not direct token restrictions. But rising regulatory headlines fit affect sentiment around event-derivatives and related liquidity risk appetite.