Rep. Bryan Steil proposes to expand the congressional stock ban to include prediction markets, aiming to prevent insider trading among lawmakers.
Rep. Bryan Steil Proposes Amendment to Stock Ban Bill
Representative Bryan Steil (R-WI) is looking to broaden the scope of the congressional stock ban bill to include prediction markets like Polymarket and Kalshi. This move seeks to address concerns over potential insider trading among lawmakers.
As chair of the House Administration Committee, Steil shared his intention during a recent roundtable discussion. He emphasized the need for a consensus against Congress members trading in markets tied to elections or public policy, indicating a significant shift in legislative focus.
The current bill, known as H.R. 7008, aims to prohibit lawmakers, their spouses, and dependents from purchasing publicly traded stocks. It also requires them to notify the public of any intent to sell stocks at least seven days in advance, imposing penalties of either $2,000 or 10% of the investment's value for violations, alongside forfeiture of any profits.
While the recent draft does not mention digital assets, Steil's proposal comes amid growing scrutiny from lawmakers regarding the integrity of prediction markets. Concerns have been raised about national security risks, highlighted by an incident involving a U.S. soldier's alleged trading based on military actions in Venezuela.
Since its committee approval in February, the bill has been stagnant, but Steil remains hopeful for a House vote this summer. Additionally, House Oversight Committee Chair James Comer (R-KY) has launched inquiries into Polymarket and Kalshi, citing rising insider trading trends on these platforms as a reason for potential Congressional action.
In April, the Senate passed a resolution banning its members from participating in prediction markets, marking a notable regulatory effort against government officials engaging in betting activities. Furthermore, a directive was issued in March advising White House staff against using these markets, following President Trump's announcement regarding military actions in the Middle East.
