All federally elected officials and government employees would be prohibited from using insider information to bet on a prediction market contract under a bipartisan bill cosponsored on March 25 by U.S. Sens. John Curtis (R-UT) and Todd Young (R-IN).
“Public service should not be a pathway to private gain,” Sen. Curtis said. “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.”
The Public Integrity in Financial Prediction Markets Act of 2026, S. 4188, which is sponsored by U.S. Sen. Elissa Slotkin (D-MI), would ban elected officials and government employees from using material non-public information of any kind on any event contract.
“Recent activity in prediction markets has raised real concerns that individuals with access to sensitive, non-public information could exploit that advantage for financial gain,” said Sen. Young. “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 legislation would cover the president, vice president, members of Congress, employees of the U.S. House of Representatives and U.S. Senate, political appointees (including members of the president’s cabinet), and employees of an executive agency or independent regulatory agency.
Additionally, the bill would apply to any information that a reasonable investor would consider important in making a decision related to a prediction market contract and is not publicly available; and the purchase, sale, or exchange of any prediction market contract that is offered on a U.S. or foreign domiciled platform.
Regarding penalties, any covered individual who violated the prohibition would be fined the greater of either $500, or the amount equal to double the profit made in the transaction, according to the bill summary provided by the senators.
No later than 180 days after the date of the bill’s enactment, the Office of Government Ethics, the Select Committee on Ethics, and the U.S. House Ethics Committee would 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, among other provisions.
“No one should be profiting off the information and knowledge gained as a public servant, period,” said Sen. 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.”