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Congress·In Committee·about 2 months ago

Congress Proposes Ban on Federal Employees Betting on Political Outcomes Using Insider Information

Also known as: Public Integrity in Financial Prediction Markets Act of 2026

Legislative Progress

✓ Filed
Review
House
Senate
President

Impacts

Negative Impacts(1)
Federal Employee
Hurts

Federal workers would be banned from trading prediction market contracts on government policies or political outcomes if they have insider info.

Mixed Impacts(1)
Sports Betting
Neutral

Prediction markets would be off-limits for federal insiders, which could make these markets fairer but also reduces their participant pool.

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.
Consumer ProtectionCriminal JusticeEconomy

Milestones

2 milestones2 actions
Jan 9, 2026House

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.

Jan 9, 2026

Introduced in House

What Happens Next

Projected impacts based on AI analysis

Committee review by Oversight and House Administration committees

The bill needs to clear committee before it can be voted on by the full House — it may be changed or never advance.

Related News

4 articles
Axios·about 2 months ago

A 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.

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Washington Post·about 2 months ago

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.'

CL+
WebProNews·about 2 months ago

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.

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Source Information

Document Type

Congressional Bill

Official Title

Public Integrity in Financial Prediction Markets Act of 2026

Bill NumberHR 7004
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred 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.

Sponsor

Cosponsors

(41)
D: 41

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.