Public Integrity in Financial Prediction Markets Act of 2026
Congress Proposes Ban on Federal Employees Betting on Political Outcomes Using Insider Information
Legislative Progress
Key Points
- This bill, introduced by Representative Torres, would stop federal employees and elected officials from using "insider information" to make money on prediction markets. These markets are websites where people bet on things like who will win an election or whether a new law will be passed.
- The ban applies to almost everyone working for the federal government, including members of Congress, their staff, and people working at government agencies. It targets anyone who might know about a government decision before the general public finds out.
- Under this rule, these officials would be forbidden from buying or selling "contracts" tied to government actions or political results if they have access to private information. This is meant to ensure that people in power don't use their positions to get rich from secret knowledge.
- The bill defines "material nonpublic information" as facts that a regular investor would find important but that aren't available to the public yet. This includes information officials get while doing their daily jobs that a normal person couldn't find with a simple search.
Impact Analysis
Personal Impact
How this policy affects specific groups of people
Broader Impacts
Milestones
Referred to the Committee on Oversight and Government Reform, and in addition to the Committee on House Administration, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Related News
4 articlesA congressman wants to criminalize insider trading on prediction markets
Rep. Ritchie Torres is introducing legislation to ban government officials from using privileged information to bet on political events. The move follows a suspicious $400,000 profit made by a trader on Polymarket shortly before the U.S. capture of Venezuelan leader Nicolás Maduro.
Who used the Maduro raid to earn $400K? The pool of suspects is alarming.
The Public Integrity in Financial Prediction Markets Act would prohibit employees and elected officials in both Congress and the executive branch from buying or selling prediction market contracts tied to government action, addressing what Rep. Torres calls a 'cesspool of corruption.'
Torres Bill Criminalizes Insider Trading in Prediction Markets Post-Polymarket Profit
The proposed act would impose criminal penalties on federal employees and appointees who trade using material nonpublic information. It mirrors the 2012 STOCK Act but adapts the principles to the decentralized and event-driven nature of prediction markets.
Source Information
Document Type
Congressional Bill
Official Title
Public Integrity in Financial Prediction Markets Act of 2026
Data Sources
Sponsor
Cosponsors
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