A White House briefing by Press Secretary Karoline Leavitt reignited insider trading concerns after it ended just seconds before a key prediction market threshold.
The January 7 briefing concluded shortly before the 65-minute mark used by Kalshi bettors, triggering viral speculation online.
Traders who bet the briefing would end early briefly saw outsized returns, prompting accusations of market manipulation.
Critics and political commentators questioned whether events controlled by officials should be eligible for betting.
The original post sharing the clip was later described as satire, and Kalshi said total trading volume was minimal.
Kalshi said insider trading claims were unfounded, noting the market involved only a few thousand dollars.
Broader scrutiny intensified after a Polymarket user reportedly earned $400,000 betting on the capture of Venezuelan President Nicolás Maduro.
The wager prompted legislative action from Democratic lawmakers concerned about conflicts of interest.
Representative Ritchie Torres introduced a bill to ban public officials from participating in prediction markets tied to government actions.
Prediction-market profiteering by government insiders must be prohibited—period.
Ritchie Torres said.
Former House Speaker Nancy Pelosi co-sponsored the bill, drawing attention due to long-standing scrutiny of her family’s stock trading history.
The proposal would bar elected officials and staff from betting on political outcomes when they have access to non-public information.