U.S. bipartisan lawmakers propose ban on government officials participating in prediction market trading

TechubNews

2026-03-26 05:52:22

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Techub News reports that U.S. Representative Adrian Smith and Nikki Budzinski jointly introduced the “Prevent Insider Trading Act,” which aims to prohibit the President, Vice President, members of Congress, and political appointees from betting on prediction markets. The restriction covers political events, policy decisions, and other government actions, and also applies to their spouses and dependents.

Under the proposed provisions, violators will face fines equal to 10% of the total transaction value and will forfeit all illegal profits, with the collected fines going to the U.S. Treasury. Recently, due to suspected insider trading related to the U.S.-Iran conflict and Venezuelan military actions on the Polymarket platform, several lawmakers have increased scrutiny in this area. Previously, similar proposals such as the BETS OFF Act and the DEATH BETS Act have been discussed in Congress.

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