In a major move to protect the integrity of government operations, Governor Kathy Hochul has signed Executive Order No. 60. The directive officially prohibits New York State employees from using nonpublic, “insider” information to participate in or profit from decentralized prediction markets.
Stamping Out the “Ethical Wild West”
The order applies to all state officers and employees serving at the Governor’s pleasure. Hochul noted that the recent “proliferation of prediction markets”, platforms where users wager on future events like elections or military strikes, has created a dangerous incentive for officials to monetize privileged data. Under the new rules, violations can result in immediate dismissal, professional sanctions, or criminal referrals.
Verbatim from Governor Kathy Hochul’s announcement:
“Getting rich by betting on inside information is corruption, plain and simple. Our actions will ensure that public servants work for the people they represent, not their own personal enrichment. While Donald Trump and DC Republicans turn a blind eye to the ethical Wild West they’ve created, New York is stepping up to lead by example and stamp out insider trading. The maintenance of public trust is founded on the principle that public servants are charged with using their positions to benefit the public good.”
A Broad Definition of Misconduct
The order defines a prediction market as any unlicensed platform that allows the purchase and sale of contracts based on future events. This definition specifically targets the “perfectly-timed” wagering patterns seen in markets related to geopolitical conflicts, such as the recent billion-dollar trading volumes tied to the war in Iran.
Hochul’s order builds upon existing New York Public Officers Law, extending traditional anti-corruption principles to modern technologies that blur the boundary between financial speculation and illegal gambling.
