Governor Bars State Employees From Using Insider Info on Prediction Markets

Minnesota Governor Tim Walz prohibited state agency employees from using nonpublic or confidential information obtained through their employment to participate in prediction markets.

In the Executive Order, Governor Walz stated that prediction markets were highly susceptible to insider trading and that an individual's position in government should not provide an unfair financial advantage. The order followed a federal court's preliminary injunction blocking Minnesota from enforcing a state law that would have banned prediction market platforms entirely (see prior coverage).

The order prohibited employees of state agencies, including the Governor, Lieutenant Governor, and agency commissioners, from using nonpublic data or confidential information to further a private interest through a prediction market. The restriction applied regardless of whether the employee realized a profit, derived a benefit, or prevented a loss from the transaction.

Employees who violated the order faced discipline up to and including discharge, and could be subject to criminal penalties. The order strongly encouraged other public entities, including the state legislature and judicial branch, to adopt similar measures.