US lawmakers have introduced new legislation aimed at restricting insider trading in prediction markets, reflecting growing concern about the misuse of confidential government information. The bipartisan Public Integrity in Financial Prediction Markets Act of 2026 was unveiled by Todd Young, Elissa Slotkin, John Curtis, and Adam Schiff.
Bill Targets Insider Use of Non-Public Information
The proposed legislation seeks to prohibit government officials from using insider knowledge to place bets on prediction market contracts. If enacted, the rules would apply to senior government figures, including the president, vice president, members of Congress, political appointees, and employees of federal agencies.
The bill defines insider information as any non-public data that a reasonable investor would consider important when deciding whether to enter a prediction market contract. Lawmakers argue that prediction markets, which allow users to wager on real-world outcomes, risk becoming a new avenue for insider profiteering if left unregulated.
Reporting Rules and Financial Penalties Proposed
Under the bill, officials would be required to report wagers exceeding $250 within 30 days, detailing contract size, price, timing, platform used, and resulting profits or losses.
Penalties would include fines of $500 or double the profit earned, whichever amount is greater. The legislation follows the earlier PREDICT Act, which focuses specifically on insider trading tied to political and policy-related events.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.