Senior government officials would not be allowed to participate in insider prediction market trading under a bipartisan bill cosponsored on March 25 by U.S. Rep. Adrian Smith (R-NE).
The Preventing Real-time Exploitation and Deceptive Insider Congressional Trading Act (PREDICT Act), H.R. 8076, which is sponsored by U.S. Rep. Nikki Budzinski (D-IL), would prohibit members of Congress, their spouses and dependent children; the president and vice president; and political appointees, including individuals serving in executive schedule positions, among others, from trading on the outcomes of political events, policy decisions, and other government actions on prediction markets.
“Serving the American people is a privilege, not a pathway to profit. Our common-sense, bipartisan bill will give Americans confidence that the decisions of their elected officials are guided by merit, not personal profit,” Rep. Smith said. “I am proud to partner with Rep. Budzinski to ensure that government officials do not profit from the sensitive information entrusted to them.”
Violations of H.R. 8076 would result in a civil penalty equal to 10 percent of the value of the prohibited transaction, as well as full disgorgement of any profits earned, to be paid into the U.S. Treasury, according to a bill summary provided by Rep. Smith’s staff.
“The American people are tired of politicians using their influence for personal gain, and the rise of prediction markets has made those concerns even more relevant,” said Rep. Budzinski. “I am excited to be working with Rep. Smith to close that loophole and ensure that those with access to sensitive information cannot profit from it.”