House Delays Action on Prediction Market Ban Despite Bipartisan Calls

House members and staff can still place bets on prediction markets that allow wagering on sports, culture, policy, and elections. The Senate has already banned its members and staff from trading event contracts, and the White House issued an April memo advising federal employees against using platforms such as Kalshi and Polymarket.

Growing Calls for Restrictions Rep.

Torres introduced a bill last week that would bar campaign staffers from betting on their own candidates with unreleased information. He also signed a bipartisan letter urging House leadership to change chamber rules to end the use of prediction markets by members and staff.

Rep. Ashley Hinson, R-Iowa, proposed a similar ban earlier this month. She stated that Congress is not a casino and that members should not profit from prediction markets or stock trades using insider knowledge. Minority Leader Hakeem Jeffries supports a House ban and has urged Speaker Johnson to bring a measure to the floor swiftly, according to his spokeswoman Christiana Stephenson.

House ethics rules do not mention prediction market bets, so members and staff are not required to disclose any profits from these trades. Current rules do require disclosure of profits from stocks, bonds, and cryptocurrency. The Commodity Futures Trading Commission oversees prediction markets and prohibits insider trading under the Commodity Exchange Act.

Some lawmakers and former regulators have said new rules may be needed to address bets on political and policy outcomes.

April, prosecutors charged a U.S. soldier with using classified information to win more than $400,000 betting on the removal of Venezuelan leader Nicolás Maduro. In May, NPR reported that a political campaign staffer earned thousands of dollars by betting on their own candidate using unreleased polling data.

Despite at least ten proposed bills addressing insider trading on prediction markets, the House has not moved forward on a rule change.