Bipartisan Senators Propose Public Integrity in Financial Prediction Markets Act

(AsiaGameHub) –   The legislative effort against prediction markets pressed forward strongly on Thursday, with lawmakers unveiling yet another bill aimed at the sector. 

Sens. Elissa Slotkin (D-MI), Todd Young (R-IN), Adam Schiff (D-CA), and John Curtis (R-UT) are spearheading this bipartisan initiative, known as the Public Integrity in Financial Prediction Markets Act of 2026, which seeks to prohibit government officials from leveraging insider information to gain profits from event contracts.

As drafted, the legislation aims to stop federally elected officials, political appointees, and government employees from utilizing their access to sensitive, nonpublic information—acquired through their trusted roles—to execute trades on prediction markets. 

Similar to other proposals, this legislation comes in the wake of multiple reports of alleged insiders securing substantial profits by making suspiciously timely trades ahead of major geopolitical events, including the joint U.S.-Israeli strikes on Iran, where six accounts earned $1.2 million.

In a press release announcing the bill, Young referenced these worries:

“Public service should never be a pathway to personal profit based on insider information. Recent activity in prediction markets has raised real concerns that individuals with access to sensitive, nonpublic information could exploit that advantage for financial gain.” 

This measure joins a growing number of bills targeting the industry, as lawmakers from both parties voice concerns over insider trading, sports contracts, and markets linked to war and government actions. 

Bill Covers Congress, Executive Branch Staff & Political Appointees

The proposed bill aims to address what many view as an ethics gap, as prediction markets are being used more frequently as financial tools, sparking worries about insider trading. 

Under the legislation, “covered individuals” would encompass the president, vice president, members of Congress, and employees of executive or independent regulatory agencies. Those in these categories would be prohibited from using:

“Material nonpublic information that a reasonable investor would deem significant when making a decision about a prediction market contract and that is not publicly accessible.”

The bill would establish strict penalties and reporting requirements:

• Authorizes fines of $500 or double the profit from the trade, whichever is higher. 
• Oversight ethics offices are required to establish regulations, issue guidance, and collect reports on transactions exceeding $250.  
• Any covered individual involved in a transaction worth over $250 must submit a detailed report to their oversight ethics office within 30 days. 

Slotkin stressed why she believed the bill is needed:

“No one should profit from the information and knowledge gained through public service, plain and simple. This bill is a crucial initial step in establishing commonsense regulations for prediction markets, with real enforcement to ensure those who violate these rules face tangible consequences. I’m proud of our bipartisan group and thank Senators Young, Schiff, and Curtis for collaborating with me to advance this critical legislation.”

Curtis noted that the bill would apply long-standing insider-trading principles to a new form of financial product. Schiff, on the other hand, contended that the industry cannot be left to regulate itself.

Competitive Field of Prediction Market Legislation

The Public Integrity in Financial Prediction Markets Act enters an already packed arena of legislative proposals competing for attention on Capitol Hill, as members of Congress aim to define their stances in the debate. In January, Rep. Ritchie Torres (D-NY) introduced a House version of the same act. 

On the same day Slotkin, Young, Schiff, and Curtis introduced this bill, Sen. Jeff Merkley (D-OR) and Rep. Jamie Raskin (D-MD) unveiled the STOP Corrupt Bets Act, a bicameral bill that would prohibit prediction market betting on elections, government actions, and military operations. 

Other recent proposals include the End Prediction Market Corruption Act by Merkley and Sen. Amy Klobuchar (D-MN), Schiff’s DEATH BETS Act, and the Prediction Markets Security and Integrity Act of 2026 by Sens. Richard Blumenthal (D-CT) and Andy Kim (D-NJ). 

Other bills advancing through Congress include the Prediction Markets Are Gambling Act by Sens. John Curtis (R-UT) and Adam Schiff (D-CA), and the PREDICT Act by Reps. Adrian Smith (R-NE) and Nikki Budzinski (D-IL), which focuses on political event contracts.

Considering the number of bills under consideration in Congress, one thing is clear: Congress is seeking to address what it perceives as the prediction market issue from various perspectives. Though no single bill has yet distinguished itself, it appears lawmakers have no plans to ease the pressure on prediction markets in the near future.