The U.S. House Administration Committee on June 24 voted 5-4 to pass a Republican-led bill recently unveiled by U.S. Reps. Bryan Steil (R-WI) and Ashley Hinson (R-IA) to restrict members of Congress, their spouses, and dependents from profiting off prediction markets.
“Lawmakers should be writing policy, not wagering on its outcome,” Rep. Steil posted on Facebook.
The congressman is chairman of the committee and sponsor of the Stop Lawmakers from Predicting Act, H.R. 9367, which he introduced on June 18 alongside four original cosponsors, including Rep. Hinson and U.S. Rep. Greg Murphy (R-NC).
Specifically, congressional members, their spouses, and their children would be prohibited from using prediction markets to gamble on public policy issues and political outcomes, according to a bill summary provided by the lawmakers.
“I am willing to pursue any and all paths to ban members of Congress from trading on prediction markets when they’re literally influencing the outcomes of those bets,” said Rep. Hinson. “Prediction markets are blowing up right now, and so are the concerns about D.C. insiders cashing in on political events using information the public may not have.
“I’m calling on our House Republican leadership to bring this to the floor immediately — who would vote against this common-sense anti-corruption legislation?” she asked.
If enacted, H.R. 9367 also would require violators to pay a penalty equal to $2,000 or 10 percent of the value of the prohibited transaction (whichever is greater), and the net gain realized from the transaction; prohibit members from using their Representational Allowance, Senate personnel, and office expense account, or political contributions or donations to pay the fine; and refer former members who resign or retire without paying the fine to the U.S. Department of Justice for civil enforcement.
The measure now heads to the full chamber for consideration.