Rep. Bryan Steil of Wisconsin is set to introduce a provision that would ban congressional lawmakers and their families from participating in prediction markets concerning policy, politics, and elections. This measure is part of a larger bill that would also restrict members of Congress from buying new shares of individual stocks, except for those acquired through dividends from existing holdings.
The bill has backing from House Speaker Mike Johnson and former President Donald Trump, and a vote is anticipated on the House floor. Under Steil's proposal, lawmakers who engage in betting on events where they possess insider knowledge would incur a fee of $2,000 or 10% of the transaction's value, whichever is greater, along with any profits.
However, the provision allows betting on non-political events, such as sports. Steil expressed that certain prediction markets do not pose significant ethical issues, citing sports betting as an example. This initiative comes amid heightened scrutiny of prediction markets like Kalshi and Polymarket, with the Senate already implementing a rule barring senators and their staff from such betting.
For the House bill to become law, it will require Senate approval, which may be challenging given the lack of Democratic support, particularly since the bill focuses solely on lawmakers and not on Trump. This development could reshape the landscape of prediction markets and the ethical considerations surrounding them for public officials