House Republicans have advanced legislation that would prohibit members of Congress and their immediate families from trading on prediction markets tied to elections and government actions. The House Administration Committee voted along party lines Wednesday to approve the bill, sending it to the full House for consideration. The legislation, introduced by House Administration Committee Chairman Rep. Bryan Steil, would bar lawmakers, their spouses, and dependent children from participating in Washington-focused prediction markets involving election outcomes or government decisions. The proposal comes as lawmakers in both chambers have increased scrutiny of prediction markets amid concerns that members of Congress could profit from nonpublic information obtained through their official duties.
Those concerns intensified after several high-profile trades involving events such as the capture of then-Venezuelan leader Nicolás Maduro, Google’s search results and developments related to the Iran conflict. Earlier this year, the Senate unanimously adopted a resolution banning senators and Senate staff from participating in prediction markets altogether. Unlike the Senate’s blanket prohibition, the House proposal is more narrowly focused on markets involving elections and government actions. The committee vote exposed divisions over how broadly Congress should regulate prediction market activity.
Committee Republicans backed the legislation, arguing it addresses the appearance of conflicts of interest without unnecessarily restricting other forms of lawful wagering. Committee Democrats opposed the measure, saying it leaves significant loopholes. Rep. Joe Morelle, the committee’s ranking Democrat, argued the legislation does not go far enough. “The Senate did it in a matter of minutes – no six-month grace period, no procedurally laborious process,” Morelle said. “They just went to the floor with a two-page resolution and banned it all unanimously. We should do the same.”
Democrats Call for Broader Restrictions
Morelle criticized the House proposal as being “so filled with loopholes that it looks more like a sieve than a bill.” Steil defended the legislation, arguing it appropriately targets markets where lawmakers could have access to information unavailable to the public. He also questioned why a broader ban should prohibit family members from participating in sports-related prediction markets when they are already free to place similar wagers through sportsbooks or casinos. Steil cited the example of a lawmaker’s college-age child placing a wager on a sporting event through a prediction market platform, arguing such activity should not be prohibited.
Instead, he said, the legislation focuses specifically on political and public policy markets where conflicts of interest could arise, Politico reported. “Lawmakers elect to serve the American people, not to enrich themselves by wagering on outcomes from the decisions they make,” Steil said. “We have a real opportunity to restore trust in Congress by taking necessary steps to eliminate even the appearance of impropriety.” Supporters of the bill argue it strikes a balance by preventing lawmakers from profiting off government decisions while avoiding restrictions on unrelated forms of legal gambling.
Opponents contend Congress should adopt the Senate’s broader approach by banning lawmakers and staff from participating in prediction markets entirely. The legislation now awaits consideration by the full House, where lawmakers will decide whether to move forward with the narrower Republican-backed proposal or pursue broader restrictions similar to those already adopted by the Senate. The Senate approved a bipartisan measure banning members and their staff from using insider information to profit on prediction market platforms, in May.
Senate Already Approved Broader Ban
The measure, pushed by Sen. Bernie Moreno, prevents senators and their aides from placing bets on platforms such as Polymarket and Kalshi. These platforms allow users to wager on real-world events, including elections, geopolitical developments, and other high-impact outcomes. Moreno said the effort aims to eliminate potential conflicts of interest and restore public trust in Congress. “I don’t believe we should trade stocks at all. It’s completely insane,” Moreno said. “I think we should focus on our jobs and have our voters go, ‘Hey, this guy’s voting this way, because this is the right thing for the state,'” he said. This article may contain commentary which reflects the author’s opinion.
