A bipartisan group of senators launched the Public Integrity in Monetary Prediction Markets Act of 2026 on Thursday, prohibiting authorities officers from utilizing nonpublic data to commerce prediction-market contracts and imposing fines equal to twice the earnings earned. It’s the second prediction market invoice launched this week alone. That cadence shouldn’t be a coincidence. It’s a coordinated legislative sign.
The invoice covers the president, vp, members of Congress, political appointees, and workers of govt and unbiased regulatory businesses. Any contract wager above $250 have to be reported to a supervising ethics workplace inside 30 days, with disclosure necessities that embody value, place, platform title, and revenue or loss.
Congress is drawing a line round prediction markets as a brand new vector for insider buying and selling. Two payments in 5 days means that is not a fringe concern.
- Legislative Scope: The Public Integrity in Monetary Prediction Markets Act covers the president, vp, all members of Congress, political appointees, and federal company workers — with necessary reporting of any contract wager exceeding $250 inside 30 days.
- Penalty Construction: Violations carry fines as much as double the quantity of earnings earned, concentrating on monetary incentives immediately moderately than imposing flat regulatory penalties.
- Market Implication: Platforms like Kalshi and Polymarket — which up to date buying and selling guidelines on March 23, 2026, to ban use of confidential data — now face potential CFTC scrutiny and necessary compliance audits if both invoice advances to markup.
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The Invoice: What the Public Integrity Act Truly Prohibits
Senators Todd Younger, Elissa Slotkin, John Curtis, and Adam Schiff launched the invoice within the second session of the 119th Congress. The laws defines insider data as something a “cheap investor would think about essential” in making a prediction market resolution that isn’t publicly accessible — a normal intentionally broad sufficient to cowl coverage data, regulatory selections, and authorities actions earlier than they’re introduced.
The reporting framework requires officers to reveal the variety of contracts bought, the value and timestamp of every transaction, the contract title, the place taken, the buying and selling platform used, and any revenue or loss. That stage of granularity mirrors securities disclosure necessities, not informal wagering oversight.
Senator Slotkin framed the invoice sharply: “Nobody must be profiting off the data and data gained as a public servant, interval.” She added the invoice “has actual tooth to make sure those that break these guidelines face actual penalties.” The double-profit penalty construction is designed to get rid of any monetary logic behind the violation.
This invoice follows the PREDICT Act, launched March 25, 2026, by Reps. Nikki Budzinski (D-IL) and Adrian Smith (R-NE), which imposes civil penalties of 10% of the transaction worth plus full disgorgement of earnings to the U.S. Treasury. The PREDICT Act extends buying and selling bans to spouses, dependent kids, and Govt Schedule positions — a broader private scope than the Senate invoice. Collectively, they cowl almost each class of federal official and their speedy households.
Rep. Adrian Smith summarized the bipartisan rationale: “Our commonsense, bipartisan invoice will give People confidence that the selections of their elected officers are guided by benefit, not private revenue.” Each payments particularly goal platforms, together with Kalshi and Polymarket, which have emerged because the dominant U.S.-accessible prediction market venues.
The Curtis-Schiff Senate effort, launched earlier this week, additionally launched a companion measure concentrating on sports activities betting contracts on prediction platforms, a 3rd legislative prong working parallel to the insider buying and selling focus. That broader sweep suggests Congressional intent extends past political occasion markets into the complete prediction market class.
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