US Congressman Moves to Ban Staff From Trading on Prediction Markets

A sitting subordinate of Congress has introduced authorities to prohibit legislature unit from trading connected prediction markets platforms, extending a question of bipartisan legislative enactment that has produced astatine slightest six chiseled bills since January 2026 targeting the sector’s intersection with insider information. The determination reflects increasing organization discomfort with a marketplace operation that, by design, prices governmental outcomes—and truthful creates nonstop fiscal incentives for those with privileged entree to authorities decision-making to commercialized connected it.

We fishy this latest connection is little astir prediction markets arsenic a fiscal instrumentality and much astir the accelerating realization that existing morals frameworks, built astir equities, not lawsuit contracts, are structurally inadequate for the existent regulatory environment. The STOCK Act was not written with Kalshi successful mind.

Representative Ritchie Torres (D-NY) introduced the Public Integrity successful Financial Prediction Markets Act successful January 2026, targeting national elected officials, governmental appointees, enforcement subdivision staffers, and legislature staff.

The measure prohibits trading connected outcomes tied to nonpublic accusation accessed done authoritative duties—a narrower operation than broad bans projected elsewhere, but 1 that straight addresses the mechanics of imaginable abuse. Torres characterized the authorities arsenic “not a ceiling, but a floor” for national regularisation of the sector.

The measure sits alongside a crowded legislative field. Senators Jeff Merkley (D-OR) and Amy Klobuchar (D-MN) person projected the End Prediction Market Corruption Act, which would prohibit the president, vice president, and members of Congress from trading connected immoderate prediction marketplace level outright. Senator Chris Murphy (D-CT) and Representative Greg Casar (D-TX) introduced the BETS OFF Act, Banning Event Trading connected Sensitive Operations and Federal Functions, targeting contracts connected terrorism, assassination, war, and authorities actions deemed controllable by insiders.

The bipartisan Event Contract Enforcement Act, sponsored by Representative Blake Moore (R-UT) and Representative Salud Carbajal (D-CA), directs the Commodity Futures Trading Commission (CFTC) to prohibit contracts tied to terrorism, sports, and amerciable activities; Moore described it arsenic ensuring markets “can proceed to service morganatic concern interests portion protecting Americans from risk.”

None of these bills is proximate to a level vote, and the Trump administration’s posture toward prediction markets has been permissive alternatively than restrictive—a hostility that complicates the legislative calculus considerably.