US lawmakers have introduced a second bipartisan bill this week aimed at prohibiting government officials from insider trading on prediction markets. The Public Integrity in Financial Prediction Markets Act of 2026 would ban executives from using non-public information to bet on platforms like Kalshi and Polymarket. It introduces penalties and mandatory reporting for transactions over $250.
A bipartisan group of US lawmakers has introduced a bill to curb insider trading by government officials on prediction markets. The Public Integrity in Financial Prediction Markets Act of 2026 was unveiled by Senators Todd Young and John Curtis, along with Representatives Elissa Slotkin and Adam Schiff.
The legislation seeks to prohibit officials from using insider information to bet on a prediction market contract. It covers the president, vice president, members of Congress, political appointees, and federal agency employees.
“No one should be profiting off the information and knowledge gained as a public servant, period,” stated Representative Slotkin in an announcement. She said the bill has real teeth to ensure rule-breakers face consequences.
The bill defines insider information as anything important to an investor that is not publicly available. It also imposes reporting requirements for any contract wagers exceeding $250 within 30 days.
Officials must report details including the contract price, transaction date, and profit or loss. Penalties would be the greater of $500 or double the profit made from the prohibited contract.
This marks the second such bill introduced this week, following the PREDICT Act unveiled on Tuesday. The PREDICT Act focuses on preventing insider trading related specifically to political events and government actions.
The legislative push highlights growing concerns that prediction markets could enable new forms of insider trading. Platforms like Kalshi and Polymarket have recently moved to tighten their own rules against insider wagering.
