WASHINGTON—U.S. Senators John Curtis (R-UT), Elissa Slotkin (D-MI), Todd Young (R-IN), and Adam Schiff (D-CA) introduced the bipartisan Public Integrity in Financial Prediction Markets Act of 2026. The bill prohibits federally elected officials and government employees from using insider information to bet on a prediction market contract.
Multiple news reports around the Iran conflict note elected and government officials at all levels are privy to confidential information that could appear on a prediction market. This legislation would ban them from using material non-public information of any kind on any event contract.
“Public service should not be a pathway to private gain,” said Senator Curtis. “Our bipartisan legislation ensures that insider trading rules apply to prediction markets and removes any ambiguity in how those rules are enforced—underscoring a basic expectation that those entrusted with sensitive information cannot use it for personal profit.”
“No one should be profiting off the information and knowledge gained as a public servant, period,” said Senator Slotkin. “This bill is an important first step in placing common sense rules around prediction markets, and it has real teeth to ensure those who break these rules face real consequences. I am proud of our bipartisan coalition, and I thank Senators Young, Schiff and Curtis for working with me to move this important bill forward.”
“Public service should never be a pathway to personal profit based on insider information,” said Senator Young. “Recent activity in prediction markets has raised real concerns that individuals with access to sensitive, nonpublic information could exploit that advantage for financial gain. Our bill will prohibit elected officials, staff, and executive branch employees from trading prediction market event contracts based on information acquired as part of their official duties. This is a sensible step to protect taxpayers and promote integrity in government.”
“The prediction markets industry can’t be left alone to self-police,” said Senator Schiff. “That’s why we need strong rules to protect against elected officials exploiting insider information to profit on prediction markets. I’m proud to join this bipartisan effort to crack down on this insidious form of insider trading.”
Details of the Public Integrity in Financial Markets Act of 2026:
- Covered individuals: President, Vice President, Members of Congress, employees of the House of Representatives and Senate, political appointees (including the President’s cabinet), employees of an Executive agency or independent regulatory agency.
- Insider information: Any information that a reasonable investor would consider important in making a decision related to a prediction market contract and is not publicly available.
- Covered transactions: The purchase, sale, or exchange of any prediction market contract that is offered on a U.S. or foreign domiciled platform.
- Penalties: Any covered individual who violates the prohibition shall be fined the greater of either $500, or the amount equal to double the profit made in the transaction.
- Enforcing body: No later than 180 days after the date of enactment the Office of Government Ethics, Select Committee on Ethics, and Committee on Ethics of the House of Representatives will: impose and collect penalties, establish procedures and standards, issue rules and guidelines in consultation with the Commodity Futures Trading Commission—and publish such information on a website.
- Reporting Requirements: No later than 30 days after a covered transaction over $250, the covered individual must submit a report to the supervising ethics office and include the number of contracts purchased, price of contract, date and time of transaction, name of contract, position taken on contract, name of trading platform used, profit or loss made on transaction. If the contract is not settled within 30 days of purchasing the contract an additional report shall be submitted after the contract closes or covered persons exit the position.
The full text of the bill is available here.