Congress Cracks Down on Prediction Markets Amid Insider Trading Fears

Prediction markets have drawn significant attention in Congress this year. In 2026, lawmakers introduced 14 bills covering 11 distinct proposals aimed at regulating these controversial trading platforms. The push follows growing concerns over insider trading and unethical betting practices.

One of the earliest measures, the Public Integrity in Financial Prediction Markets Act of 2026, set the tone for stricter oversight. Yet, despite the flurry of activity, none of these bills have moved past committee review.

The legislative push began in March 2026, when 12 prediction market-related bills were tabled. Among them, the DEATH BETS Act seeks to outlaw contracts linked to death, violence, or national security threats. Another proposal, the BETS OFF Act, would ban markets tied to military operations and other sensitive government activities.

Two further bills—the End Prediction Market Corruption Act and the PREDICT Act—target federal officials and members of Congress. Both would prohibit them from trading on contracts related to government decisions. Meanwhile, the Prediction Markets Are Gambling Act aims to stop federally regulated exchanges from offering sports betting contracts. Beyond legislation, over 40 lawmakers have taken direct action. A letter signed by 42 representatives was sent to the Commodity Futures Trading Commission (CFTC) and the Office of Government Ethics. The message urged regulators to investigate potential insider trading within prediction markets, signalling broader unease about their oversight.

The 14 bills introduced so far reflect a clear effort to tighten controls on prediction markets. However, with none progressing beyond committee referral, their immediate impact remains uncertain. The focus now shifts to whether regulators will respond to the calls for stricter enforcement.