US lawmakers have introduced a bipartisan bill to prevent government officials from using insider information to profit from prediction markets.
The proposed Public Integrity in Financial Prediction Markets Act of 2026 would ban officials from trading on non-public information and require disclosure of larger wagers.
“No one should be profiting off the information and knowledge gained as a public servant, period,”
Said Senator Elissa Slotkin.
The bill would require officials to report trades over $250 within 30 days, including detailed information such as contract type, platform used and profit or loss.
Penalties would include fines of at least $500 or double the profits gained from such trades, whichever is greater.
The legislation follows growing concerns that prediction markets like Kalshi and Polymarket could be exploited for insider trading tied to real-world events.
It also comes alongside a separate proposal, the PREDICT Act, as regulators and platforms move to tighten oversight of prediction market activity.