Prediction Market Act of 2026

Key Points

• This bill creates a legal framework for prediction markets -- platforms where people trade contracts based on future events like elections, weather, or sports outcomes. It gives the CFTC authority to oversee these markets on a case-by-case basis.
• Members of Congress, the President, the Vice President, and senior executive branch officials would be banned from trading event contracts. This targets potential insider trading by people with access to nonpublic government information.
• The CFTC could block event contracts that involve unlawful activity, terrorism, assassination, war, violence, or gaming. Any contract that materially encourages violence or similar unlawful activity would likely be deemed contrary to the public interest.
• New consumer protections require platforms to verify users are at least 18, follow anti-money laundering rules, segregate customer funds, and avoid deceptive marketing. A new Office of the Retail Advocate and an Advisory Council on Consumer Protection would be created within the CFTC.
• The bill authorizes $30 million per year for five years (fiscal years 2027-2031) for the CFTC to implement oversight, develop surveillance technology, conduct studies, and run the new Office of the Retail Advocate.
• The CFTC and SEC are directed to jointly study event contracts involving securities jurisdiction and blockchain-based decentralized applications, with a report due within 15 months of enactment.