Lynnae Williams Journalist
Lynnae is a journalist covering the intersection of technology, culture, and gambling. She has more than five years of experience as a writer and editor, with bylines at SlashGear and MakeUseOf. On the iGaming side,...
Read Full BioSen. Richard Blumenthal (D-CT) has become the latest member of Congress to propose legislation to rein in the prediction market industry. On Tuesday, the senator introduced legislation to tighten oversight of these platforms, arguing that the rapidly growing sector has developed without safeguards to prevent insider trading, market manipulation, and other abuses.
Co-sponsored by Sen. Andy Kim (D-N.J.), the bill, known as the Prediction Markets Security and Integrity Act of 2026, would establish federal consumer protections, ban ethically questionable wagers, and return regulatory authority to individual states.
Blumenthal’s announcement follows a flurry of legislative activity on Capitol Hill, all aimed at curbing abuses in prediction markets. It comes just a day after Sen. Adam Schiff (D-CA) introduced the DEATH BETS Act, a separate bill that would amend the Commodity Exchange Act (CEA) “to prohibit the listing of contracts relating to war, death, and similar activities.” These are all areas that the CEA already allows the Commodity Futures Trading Commission to block as contrary to the public interest.
In the press release announcing the bill, Blumenthal characterized prediction markets as an “out-of-control industry” that’s in need of guardrails. He described the industry as operating in a regulatory vacuum, ignoring state gambling laws.
According to Blumenthal, this lack of oversight has turned global events into a “casino game” and created an environment ripe for insider trading, market manipulation, and national security leaks. The legislation would close existing loopholes and implement basic safeguards to protect consumers. Under the bill, the Attorney General would be tasked with approving state wagering programs that meet minimum federal standards.
Federally Enforced Safeguards Against Manipulation
The proposed bill specifically goes after the “integrity and execution of listings” by prohibiting the use of material, nonpublic information for private gain. It would require prediction markets to develop and publish rules that prevent manipulation and deceptive practices.
According to the bill text: “An individual or operator of an online prediction market shall not—(1) use material, nonpublic information for private gain in wagering on an online prediction market; or (2) create or participate in listings or wagers on an online prediction market that would present a conflict of interest.”
The legislation also explicitly bans listings related to “war, military action, or death,” as well as any other matters the Attorney General deems contrary to the public interest. In an effort to protect younger users, the bill mandates age verification and bans advertising directed at those under 21.
The bill includes affordability protections, including a ban on credit card deposits and a requirement for an “affordability check” before users can wager more than $1,000 in a 24-hour period or $10,000 in a 30-day period.
Kim said the legislation is needed to protect consumers and close regulatory gaps in the industry.
“Corruption and exploitation are thriving right now within the gaps and loopholes of prediction markets. This manipulation leaves the select few winning big at the expense of working Americans. By instating basic guardrails and safeguards through this legislation, we can better protect consumers and safeguard against real threats to our national security coming out of this unregulated industry.”
Multiple Bills Target Prediction Market Industry
Since January, lawmakers in both chambers of Congress have introduced multiple bills targeting prediction markets. In addition to this week’s DEATH Bets Act, introduced by Schiff and Blumenthal’s Prediction Markets Security and Integrity Act of 2026, several other proposals are making their way through Congress.
Other recent proposals include:
- End Prediction Market Corruption Act: On March 5, Sens. Jeff Merkley (D-OR) and Amy Klobuchar (D-MN) introduced this bill, which would bar the president, vice president, and members of Congress from trading event contracts.
- Public Integrity in Financial Prediction Markets Act: Rep. Ritchie Torres (D-NY) introduced this bill in early January. If passed, it would prohibit federal officials from trading on government-related contracts if they possess material nonpublic information.
The number of bills introduced so far this year shows that prediction markets are under increased scrutiny in the halls of Congress, as policymakers debate whether the platforms should be treated more like financial derivatives exchanges or regulated like traditional gambling products.
