The legislative push against prediction markets continued full steam ahead on Thursday, as lawmakers introduced another bill targeting the sector.
Sens. Elissa Slotkin (D-MI), Todd Young (R-IN), Adam Schiff (D-CA), and John Curtis (R-UT) are leading the bipartisan effort behind the Public Integrity in Financial Prediction Markets Act of 2026, which would ban government officials from using insider information to profit from event contracts.
As written, the legislation is designed to prevent federally elected officials, political appointees, and government employees from using their access to sensitive, nonpublic information obtained through their positions of trust to place trades on prediction markets.
Like other proposals, this legislation follows several reports of alleged insiders walking away with huge profits after placing suspiciously well-timed trades in the lead-up to major geopolitical events, including the joint U.S.-Israeli strikes on Iran, where six accounts netted $1.2 million.
In a press release announcing the bill, Young referenced these worries:
“Public service should never be a pathway to personal profit based on insider information. Recent activity in prediction markets has raised real concerns that individuals with access to sensitive, nonpublic information could exploit that advantage for financial gain.”
This measure adds to the growing stack of bills targeting the industry as lawmakers from both parties express concerns about insider trading, sports contracts, and markets tied to war and government activity.
Bill Covers Congress, Executive Branch Staff & Political Appointees
The proposed bill would close what many see as an ethics gap, as prediction markets are increasingly used as financial instruments, raising concerns about insider trading.
Under the legislation, “covered individuals” would include the president, vice president, and members of Congress, as well as employees of executive or independent regulatory agencies. Anyone falling into one of these categories would be banned from using:
“Material nonpublic information that a reasonable investor would consider important in making a decision relating to a prediction market contract and that is not publicly available.”
The bill would establish strict penalties and reporting requirements:
- Authorizes fines of $500 or twice the profit earned from the trade, whichever amount is greater.
- Supervising ethics offices must establish rules, publish guidance, and collect reports on transactions exceeding $250.
- Any covered individual who participates in a transaction valued over $250 must submit a detailed report to their supervising ethics office within 30 days.
Slotkin stressed why she believed the bill is needed:
“No one should be profiting off the information and knowledge gained as a public servant, period. This bill is an important first step in placing common sense rules around prediction markets, and it has real teeth to ensure those who break these rules face real consequences. I am proud of our bipartisan coalition, and I thank Senators Young, Schiff and Curtis for working with me to move this important bill forward.”
Curtis said the bill would extend long-standing insider-trading principles to a new type of financial product. Schiff, meanwhile, argued that the industry cannot be left to self-police.
Competitive Field of Prediction Market Legislation
The Public Integrity in Financial Prediction Markets Act joins an already crowded field of legislative proposals vying for attention on Capitol Hill, as members of Congress seek to stake out their positions on the debate. In January, Rep. Ritchie Torres (D-NY) introduced a House version of the same act.
On the same day that Slotkin, Young, Schiff, and Curtis introduced this bill, Sen. Jeff Merkley (D-OR) and Rep. Jamie Raskin (D-MD) introduced the STOP Corrupt Bets Act, a bicameral bill that would ban prediction market betting on elections, government actions, and military operations.
Other recent proposals include the End Prediction Market Corruption Act from Merkley and Sen. Amy Klobuchar (D-MN), Schiff’s DEATH BETS Act, and the Prediction Markets Security and Integrity Act of 2026 from Sens. Richard Blumenthal (D-CT) and Andy Kim (D-NJ).
Additional bills making their way through Congress include the Prediction Markets Are Gambling Act from Sens. John Curtis (R-UT) and Adam Schiff (D-CA), and the PREDICT Act from Reps. Adrian Smith (R-NE) and Nikki Budzinski (D-IL), which targets political event contracts.
Looking at the number of bills being considered in Congress, one thing is certain: Congress is attempting to attack what it sees as the prediction market problem from multiple angles. While no single measure has set itself apart from the pack, at this rate, it seems lawmakers have no intention of taking the pressure off prediction markets anytime soon.
