On the 27th, California Governor Gavin Newsom signed an executive order prohibiting the state’s appointed officials from profiting in prediction markets using insider information.

The California Governor's Office stated that some officials who apparently have access to sensitive information related to the U.S. federal government are "extremely precise" in their timing when placing bets in prediction markets. The statement also criticized certain officials for turning public service into a means of "quick wealth."
The statement pointed out that four cases of prediction trading show that individuals without insider information are highly unlikely to make related trades. The profits from these predictions range from tens of thousands to millions of dollars, involving multiple military actions by the United States against Venezuela and Iran. Some predictions were opened just days before the actions or placed hours before the events occurred. Among them, six suspected insiders bet on a U.S. military strike against Iran, earning a total of $1.2 million, and they happened to open prediction market accounts just days before the conflict occurred.