Prediction market firms face growing scrutiny as Congress weighs regulation Rep. Bryan Steil is drafting legislation to ban current and former lawmakers, as well as candidates, from using prediction markets to bet on election and political outcomes due to insider information risks. The proposed law aims to explicitly prohibit such bets on platforms like Kalshi and Polymarket, while also considering regulation of foreign-based prediction markets. This initiative follows the Senate’s rule change banning senators and staff from these activities and seeks to prevent the appearance of profiting from elected office.

• Rep. Bryan Steil is developing legislation to ban lawmakers from betting on elections and political events on prediction markets.
• The proposed ban would extend to former federal lawmakers and candidates.
• Concerns about insider trading and using elected office for personal profit are driving the legislative effort.
• Legislation may also address regulation of prediction markets based outside the U.S.
• The House is seeking a statutory ban, distinct from the Senate’s rule change.
• Steil plans to attach the language to a bill banning lawmakers from stock trading.