Representative Bryan Steil introduced the Stop Lawmakers from Predicting Act on June 18. The bill prohibits members of Congress, their spouses, and dependents from placing bets on government policies or political outcomes in prediction markets.
The Wisconsin Republican serves as the chair of the House Administration Committee. The bill is a response to growing concerns about insider trading on these platforms.
Rep Steil is trying to prevent lawmakers from betting on the outcomes of U.S. politics.
The bill is based on the Stop Insider Trading Act, which the committee approved on January 14. Steil justified the new proposal as a way to restore trust in elected representatives.
“Americans have the right to know that their congressional representatives are not financially benefiting from insider information,” Steil stated. “Legislators should be making laws, not betting on their outcomes.”
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The bill prohibits members and their spouses and dependent children from betting on certain government policies, actions, or political outcomes. A violation results in a $2,000 fine or 10% of the event's value – whichever is greater. Any potential net profits are forfeited entirely.
Additionally, the bill suggests that fines cannot be paid using official representation money, Senate reimbursements, or political donations. If a lawbreaker resigns or retires without paying the fine, the matter can be referred to the Justice Department for civil action.
The proposal is part of a broader effort. In March, Senators Todd Young, Elissa Slotkin, John Curtis, and Adam Schiff introduced the Public Integrity in Financial Prediction Markets Act, aimed at banning insider information use across all platforms. In the House, the PREDICT Act extends similar restrictions to the families of officials.
The progress of the bill may depend on the parties' willingness to collaborate, as parallel proposals are being processed in both the Senate and the House of Representatives. Meanwhile, prediction market platforms have also reacted.
In June, Kalshi launched risk scoring, workplace inspections, and whistleblower channels aimed at preventing insiders from leveraging privileged information. Polymarket partnered with Chainalysis to build an on-chain monitoring system.
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