Proposed Bill Seeks to Ban President, Congress from Prediction Markets
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US lawmakers have introduced a bill aiming to ban members of the US Congress, the president and other high-ranking government officials from wagering on prediction markets. The proposed bill, a bipartisan effort from US Representative Adrian Smith and Representative Nikki Budzinski, was introduced on Tuesday and is called the Preventing Real-time Exploitation and Deceptive Insider Congressional Trading Act (PREDICT Act). “In recent months, we’ve seen instances of little-known traders making massive profits on events ranging from war with Iran to how long a government shutdown will last, raising necessary questions about the use of inside information,” Budzinski said. The move comes amid growing scrutiny of prediction markets in the US, with lawmakers and regulators taking aim at platforms such as Kalshi and Polymarket over contracts related to sports, war and politics. The bill seeks to bar members of Congress, the president, vice president and political appointees from wagering on the “outcomes of political events, policy decisions, and other government actions on prediction markets.” It also extends to the spouses and dependents of these government officials. The PREDICT Act document. Source: Adrian Smith The potential penalties listed in the PREDICT Act include a 10% fine on the total value of the contract and the disgorgement of all profits to the US Treasury. Commenting on the bill, Budzinski stressed the importance of closing loopholes to ensure people with inside knowledge “cannot profit from it.” Budzinski isn’t the only one sounding off on alleged corruption on prediction markets. Earlier this month, two Democratic lawmakers introduced a separate bill called the Banning Event Trading on Sensitive Operations and Federal Functions (BETS OFF) Act. Speaking about the bill, Senator Chris Murphy alleged that it was likely that people used “inside information” to make bets on US President Donald Trump’s military actions involving Iran. US lawmakers…
Filed under: News - @ March 26, 2026 5:29 pm