Should Politicians Be Able to Use Prediction Markets? House Bill Proposes Ban
Rep. Ritchie Torres (D-NY) and 30 House colleagues, including Nancy Pelosi (D-CA), have introduced the Public Integrity in Financial Prediction Markets Act of 2026. The proposed legislation would prohibit federal lawmakers, political appointees, congressional staff, and other executive agency employees from participating in prediction markets. The intent is to prevent government insiders—who may possess material non-public information or the ability to influence outcomes—from profiting through these markets, echoing insider trading prohibitions in securities law. Prediction markets, such as Kalshi and Polymarket, are currently regulated by the Commodity Futures Trading Commission. Recent controversies, including large, suspicious bets on major political events, have intensified scrutiny over the risk of insider trading among government officials. Supporters of the bill argue that such activity constitutes "plain-sight corruption," while critics from the prediction market industry argue these platforms improve information flow and should not be equated with gambling.
