Thomas-Henry on Intro 951 - prediction market insider trading

Good morning and thank you, Chair Brewer.

Thank you for holding today's hearing.

We often think of insider information in the context of the stock market.

But as technology evolves, so do the ways that privileged information can be used for personal gain.

Prediction markets and event-based trading platforms have created a new frontier where individuals can place financial wagers on the outcome of elections,

policy decisions, regulatory actions, and other events that may be influenced by government activity.

The question before us today is straightforward.

Should public officials or policymakers be allowed to profit from information that the public does not have access to?

I believe the answer is no.

Public service is built on trust.

New Yorkers expect that decisions made by elected officials and government policymakers are guided by the public interest, not by personal financial opportunities tied to non-public information.

That's why we're here today.

Intro 951 is about making sure our ethics laws keep pace with the times.

This bill will prohibit elected officials, policymakers, and their immediate family members from using non-public government information to profit through prediction markets and event-based trading.

Because public service should never come with a private advantage.

New Yorkers trust us with information, responsibilities, and decisions that impact their lives every day.

They deserve to know that people serving them are not also looking for opportunities to personally profit from information that the public does not have.

And while prediction markets may be new, the principle behind this legislation is not.

We already understand that insider trading undermines trust.

We already understand that public service carries a responsibility to avoid even the appearance of self-dealing.

This bill applies those same basic values to a rapidly emerging marketplace.

At a time when trust in government is fragile, we should be doing everything we can to strengthen it.

That means being proactive.

It means anticipating challenges before they become problems.

And it means ensuring that our laws reflect not just what is legal, but what New Yorkers expect from those who serve them.

This legislation is about fairness, it's about transparency, and it's about protecting the integrity of public service.

I want to thank Chair Brewer and the members of the Committee on Governmental Operations for hearing this issue today, and I look forward from here.

hearing from all the witnesses.

Thank you.

Thank you very much.

We've been joined by Council Members Wang and Council Member Wong.

And then I'm going to read, this is ironic, a statement from Council Member Dr.

Natasha Williams.