A House committee advanced U.S. legislation that aims to keep lawmakers, their spouses, and dependent children from trading on election and public-policy prediction markets.
Key Takeaways
- The bill was sent to the House floor Wednesday.
- The legislation aims to keep lawmakers from trading on the election and policy markets.
- The Senate already banned insider information trading.
The House Administration Committee’s GOP members announced the Stop Lawmakers from Predicting Act was passed Wednesday and sent to the chamber floor, where a vote on a hot topic on Capitol Hill is expected.
🚨🚨🚨 The Voter ID Act and the Stop Lawmakers from Predicting Act have PASSED @HouseAdmin ✅
— House Admin. Committee GOP (@HouseAdmin) June 24, 2026
Onto the House Floor. https://t.co/GsYcDQzBD3
“Lawmakers elect to serve the American people, not to enrich themselves by wagering on outcomes from the decisions they make,” Wisconsin Rep. Bryan Steil, sponsor of HR 9367, told Politico. “We have a real opportunity to restore trust in Congress by taking necessary steps to eliminate even the appearance of impropriety.”
The Senate has already banned members and their staff from using prediction market sites, immediately implementing the prohibition in April following multiple instances of insiders profiting.
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Insider trading
Steil’s bill, which was introduced June 18, states that covered individuals would be prohibited from purchasing prediction market contracts related to government policy, government actions, political outcomes, or other congressional matters.
Violators of the proposed law would be subjected to a fine of $2,000 or 10% of the value of the contract as well as any net gain.
Prediction market platform Kalshi recently banned multiple politicians for trading on their campaigns. An Army service member was arrested and charged after he made $400,000 from Polymarket on the capture of Venezuelan President Nicolas Maduro.
Lawmakers and federal investigators have launched probes into insiders using nonpublic information to trade on prediction markets.
Partisan divide
While the Senate needed little fanfare to enact a ban, the House’s process has become more divisive. The committee’s Republicans supported the bill, while Democrats voted against it because the party wants broader legislation to close perceived loopholes, according to Politico.
Steil questioned why representatives' family members, who can legally place bets at sportsbooks, shouldn’t trade sports event contracts at prediction market platforms.
If passed, the legislation would take effect 180 days after the act’s enactment.
