The unfolding situation in Venezuela has captured global attention, especially following a significant military operation. As a result, Representative Ritchie Torres is gearing up to propose legislation aimed at regulating insider trading within prediction markets, sparked by notable profits made from betting on the outcome of recent events involving President Nicolás Maduro.

A Call for Accountability in Prediction Markets

On January 3, the US government confirmed a high-stakes military operation leading to the apprehension of President Maduro alongside his spouse, Cilia Flores. The administration, under political scrutiny, has labeled Maduro’s regime as a “narco-terrorist organization,” with both individuals facing serious drug trafficking charges in New York.

In the wake of this controversial action, reports surfaced indicating suspicious trading activities within prediction markets. Insights from blockchain analysts have unveiled that several wallets conducted transactions in anticipation of Maduro’s capture, occurring mere hours before the military move.

Analysis reveals these wallets were recently established and solely focused on betting related to Venezuela. Total reported profits from these actions amounted to approximately $630,848, with one particular trader wagering $34,000 and reaping a staggering $409,900 in returns.

In response to these events, Rep Ritchie Torres (D-N.Y.) is slated to introduce a bill targeted at addressing ethical concerns surrounding prediction market activities. The proposed legislation, tentatively titled the Public Integrity In Financial Prediction Markets Act of 2026, seeks to prohibit government officials from engaging in prediction market contracts when they possess nonpublic information.

According to Jake Sherman of PunchBowl News, the bill’s objective is to ensure transparency and fairness in these markets. He noted that the law intends to safeguard sensitive state-related information while banning officials from making such bets when they have access to privileged knowledge.

The proposed legislation would restrict federal officials and employees from engaging in prediction market transactions that could be influenced by undisclosed information obtained through their official capacities.

This includes any trades related to government action, policy decisions, or potential political outcomes on any marketplace operating across state lines.

As prediction markets have gained traction in the financial world, interest surged significantly in late 2025, drawing Wall Street investors to the blockchain-based platforms. Currently, Kalshi stands out as the most prominent prediction marketplace, valued at $11 billion following a hefty fundraising operation in December.

Stable Trends in the Crypto Landscape Despite Turmoil

Meanwhile, the cryptocurrency sector has remained largely unaffected by the military operation in Venezuela. Bitcoin’s price has shown resilience, experiencing a moderate 2.13% increase to reach $91,414, contributing to a burgeoning total crypto market capitalization of $3.08 trillion.