According to Foresight News , California Governor Gavin Newsom signed Executive Order N-4-26 on March 27, which explicitly prohibits all public officials appointed by the governor from using non-public information obtained in the course of their official duties to profit in prediction markets or to assist their spouses, children, other family members, former business partners, or others in profiting from such information.
The order states that there have been several recent cases at the federal level where suspected insiders have profited from prediction markets using insider information. These cases involve events such as the Venezuelan military intervention, the Iranian war, and military operations against drug cartels, with individuals allegedly earning tens of thousands of dollars in profits. Although California already has ethical guidelines such as the Political Reform Act of 1974, this executive order formally extends the prohibition to prediction markets, aiming to further maintain public trust in government integrity and ensure that public officials focus on the public interest.
