House Republican introduces insider trading bill to ban market bets to predict lawmakers

One of the top Republicans in the House of Representatives Legislation introduced on Thursday would bar members of Congress, their spouses and dependent children from placing bets on prediction markets tied to legislation, government actions or election results.

Rep. Brian Steele (R-Wis.), who chairs the House Administration Committee, unveiled the law to prevent lawmakers from making predictions, saying it aims to prevent elected officials from taking advantage of information they have access to before the public.

“The American people deserve to know that their Congressman does not benefit from inside information,” Chairman Steele said in a statement. “The Prediction Act ensures that cannot happen.” “This legislation is essential to restoring the public’s trust in their elected officials. Lawmakers should write policy, not bet on its outcomes.”

Under this measure, violators will be imposed a fine of $2,000 or 10% of the value of the bet, whichever is greater, in addition to any profit made from the bet. Lawmakers cannot use official office funds, taxpayer-funded allowances or campaign donations to cover fines, and those who leave office without paying can be referred to the Justice Department for civil law enforcement.

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

The bill comes in the wake of growing bipartisan concern in Washington about lawmakers and government officials using platforms like Calcci and PollyMarket to bet on political events, including their races.

Steele told reporters Earlier this month He intends to add similar restrictions to a separate, broader bill prohibiting stock trading in Congress, which as written would prevent lawmakers, spouses and dependents from buying new stocks and would punish violators with similar fines. This stock trading bill has been stalled since the Clearinghouse Commission in February, though Steele expressed hope that the House could vote on it this summer.

The new prediction markets bill also follows another recent federal action: the Senate He issued a decision in April Ban its members and employees from using prediction markets, while the House Oversight Committee in May Open investigations In Kalshi and Polymarket over what its president described as a pattern of insider trading on the platforms.

Such moves came after High-profile arrest in April From Army Staff Sergeant Gannon Ken Van Dyke, who was accused of using classified information to fuel a series of PollyMarket bets on the ouster of Venezuelan President Nicolas Maduro in January, netting more than $400,000. Van Dyke He pleaded not guilty To the charges. The trial is Scheduled for December.