Minnesota becomes the latest US state to prohibit government officials from using inside information to bet on prediction markets
Minnesota Governor Tim Walz has signed an executive order to prevent state employees from using non-public information for insider trading on prediction markets.
The executive order prohibits employees of state agencies from using non-public or confidential information obtained from their employment to participate in prediction markets, with the ban applying whether an employee realizes a profit or not.
Employees who violate the order may be subject to discipline up to and including discharge.
“State employees serve the public and shouldn’t make money off insider information,” said Governor Walz. “It is clear that the Trump administration and companies like Kalshi are more interested in lining their pockets than protecting public trust and keeping people safe. Regardless of Trump’s grift, I am taking executive action to reinforce the strong ethical standards we have in Minnesota.”
The executive action follows a federal judge’s preliminary injunction blocking Minnesota from implementing a law banning prediction markets.
The legislation passed with bipartisan support in both the House and Senate and was scheduled to come into force on August 1, making Minnesota the first state in the nation to ban these platforms.