Also, isn't insider trading the whole point of prediction markets? They were originally conceptualized as information aggregators.

People tend to use the term insider incorrectly. Even in cftc regulated markets it is unlikely that an admin official is an insider.

What people are looking for is anti-corruption enforcement not market regulation. The problem isn’t that the admin is using advanced knowledge, all commodities trading involves that, it’s that the officials have an obligation to the public as part of their governmental service.

Of course this admin _also_ gutted the anti-corruption offices in the government along with the market regulators.

If they were then that memo got lost when it reached the general populace that sees them as a gambling vehicle. I think it'd be extremely reasonable if people with qualified access to information like this were banned from leveraging it on prediction markets.

If someone has news they want to get out they can just use the media.