US lawmakers have launched a second invoice this week aimed toward curbing prediction market insider buying and selling by authorities officers, amid rising issues over such exercise on main platforms similar to Kalshi and Polymarket.
In an announcement on Thursday, US lawmakers Todd Younger, Elissa Slotkin, John Curtis and Adam Schiff unveiled the bipartisan Public Integrity in Monetary Prediction Markets Act of 2026.
“Nobody must be profiting off the knowledge and information gained as a public servant, interval,” Slotkin mentioned, including: “This invoice is a vital first step in putting frequent sense guidelines round prediction markets, and it has actual tooth to make sure those that break these guidelines face actual penalties.”
The invoice underscores rising unease that prediction markets may change into a brand new frontier for insider buying and selling, as bets tied to real-world occasions blur the road between wagering and monetary exercise.
Invoice goals to cease insider profiteering
The most recent invoice, which has been launched within the second session of the 119th Congress, goals to ban authorities executives from utilizing “insider data to wager on a prediction market contract.”
If enacted, the Public Integrity in Monetary Prediction Markets Act of 2026 would cowl the president, vice chairman and politicians throughout Congress, the Home of Representatives and the Senate.
It will additionally cowl political appointees and “staff of an Govt company or unbiased regulatory company.”
The invoice defines insider data as something {that a} “cheap investor would think about essential in making a call associated to a prediction market contract and isn’t publicly obtainable.”
It additionally outlines reporting necessities underneath which a authorities official should report any contract wagers over $250 inside 30 days to the supervising ethics workplace. The person should embody “the variety of contracts bought, worth of contract, date and time of transaction, title of contract, place taken on contract, title of buying and selling platform used, revenue or loss made on transaction.”
The penalties will see people charged the better of $500 or double the quantity of revenue comprised of the prediction market contract.
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The payments come amid an growing variety of state and federal lawmakers taking intention at prediction markets.
It additionally marks the second invoice launched this week to attempt to cease authorities officers from utilizing insider data to revenue on prediction markets, the primary being the PREDICT Act launched by US Consultant Adrian Smith and Consultant Nikki Budzinski on Tuesday.
Nonetheless, the PREDICT Act focuses on stopping insider buying and selling on prediction markets regarding political occasions, coverage selections and different authorities actions.
Not too long ago, each Kalshi and Polymarket have made makes an attempt to tighten their guidelines to cease insiders wagering on their platforms.
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