House Republican Introduces Insider Trading Bill to Ban Lawmaker Prediction Market Bets – Decrypt

A senior House Republican introduced legislation Thursday that would bar members of Congress, their spouses, and dependent children from placing wagers on prediction markets tied to legislation, government actions, or election results.

Rep. Bryan Steil (R-Wis.), who chairs the House Administration Committee, unveiled the Stop Lawmakers from Predicting Act, saying it is meant to keep elected officials from cashing in on information they have access to before the public does.

“The American people deserve to know their Member of Congress is not profiting off insider information. The Stop Lawmakers from Predicting Act ensures that cannot happen,” said Chairman Steil, in a statement. “This legislation is critical to restoring the public’s trust in their elected officials. Lawmakers should be writing policy, not wagering on its outcome.”

Under the measure, violators would owe a penalty of $2,000 or 10% of the wager’s value, whichever is greater, plus any profit realized from the bet. Lawmakers could not use official office funds, taxpayer-funded allowances or campaign donations to cover the fines, and those who leave office without paying could be referred to the Justice Department for civil enforcement.

Steil’s office said the legislation builds on the Stop Insider Trading Act, which the committee advanced in January.

The bill follows growing bipartisan unease in Washington over lawmakers and government officials using platforms such as Kalshi and Polymarket to bet on political events, including their own races.

Steil told reporters earlier this month that he intended to add similar restrictions to a separate, broader bill banning congressional stock trading, which as written would already bar lawmakers, spouses and dependents from buying new stocks and would penalize violators with comparable fines. That stock-trading bill has stalled since clearing committee in February, though Steil has expressed hope the House could vote on it this summer.

The new prediction markets bill also follows other recent federal action: The Senate passed a resolution in April barring its own members and staff from using prediction markets, while the House Oversight Committee in May opened investigations into Kalshi and Polymarket over what its chairman described as a pattern of insider trading on the platforms.

Such moves have come following the high-profile April arrest of Army Master Sergeant Gannon Ken Van Dyke, who was accused of using confidential information to fuel a series of Polymarket bets around the January removal of Venezuelan President Nicolás Maduro, netting over $400,000 in profits. Van Dyke pleaded not guilty to the charges. The trial is set for December.