WASHINGTON — Representative Bryan Steil is drafting legislation to prohibit current members of Congress from betting on elections and political outcomes using prediction markets. He plans to extend this prohibition to former federal lawmakers and candidates for federal office.
Steil, who chairs the House Administration Committee, intends to attach this proposed betting ban to a legislative proposal that would prohibit lawmakers from trading individual stocks. The broader legislation to ban congressional stock trading passed out of committee earlier this year but has not yet received a vote on the House floor.
Steil said he is collaborating with House Republican leadership on the prediction market legislation. He stated that the new markets available to consumers necessitate explicit rules for lawmakers. "There's an avenue to make sure, now that these new and kind of novel markets are available to consumers writ large, that we put that in the rules explicitly," Steil said.
Steil also stated that legislators must avoid the appearance of using their official positions for personal financial gain. He indicated that lawmakers betting on non-political outcomes, such as sporting events, does not present a conflict. He added that prediction markets operating in the U.S. should align with domestic regulations and values, and that consumers should be protected from foreign transactions.
The Senate previously implemented a rule change prohibiting senators and their staff from placing bets on prediction markets. Kalshi and Polymarket supported this Senate rule change. Kalshi has also identified and assessed financial penalties against political candidates who traded based on non-public information concerning their own campaigns. Officials from Kalshi and Polymarket, along with traders from both platforms, met with members of Congress recently.
The Commodity Futures Trading Commission regulates prediction markets and has argued in courts and public statements that it should hold exclusive regulatory authority over the industry. Polymarket currently restricts users in the U.S. from accessing its primary exchange and is seeking regulatory approval to establish legal operations within the country.
No independent assessment of Rep. Bryan Steil’s claims was available.