Summary
- Rep. Bryan Steil (R-WI) intends to amend the House's congressional stock ban legislation to incorporate prediction markets such as Polymarket and Kalshi.
- The existing bill prohibits lawmakers and their families from acquiring new stocks and imposes fines for violations.
- This initiative is part of a wider federal crackdown on prediction markets, which includes a Senate prohibition on member betting and ongoing House Oversight inquiries.
Rep. Bryan Steil (R-WI) indicated on Thursday that the restrictions outlined in a bill aimed at curbing insider trading among lawmakers should extend to prediction markets.
As chair of the House Administration Committee, Steil informed reporters during a roundtable that there are plans to enhance the stock ban legislation to encompass platforms like Polymarket and Kalshi, according to Bloomberg Government.
“In my discussions with fellow members and the general public, it seems clear that there is a consensus against Congress members engaging in trades related to elections or public policy,” he remarked.
The proposed legislation, designated as H.R. 7008, aims to entirely prevent lawmakers, their spouses, and dependents from buying publicly traded stocks. It also mandates that they submit public "intent to sell" notifications at least seven days before any sale. Those who violate this law would incur penalties of either $2,000 or 10% of the investment's worth—whichever is higher—along with the forfeiture of any profits made.
Currently, the bill does not specifically address digital assets in its latest draft. Steil’s remarks appear amidst increasing criticism from lawmakers who argue that these platforms could compromise market integrity or pose national security risks, often referencing an instance involving a U.S. soldier's alleged trades based on military actions in Venezuela.
Since passing through committee in February and being placed on the chamber’s calendar, the bill has not progressed further, although Steil expressed optimism that the House might vote on it this summer.
Additionally, last month, James Comer (R-KY), chair of the House Oversight Committee, initiated inquiries into Polymarket and Kalshi, claiming that the “increasing trend of insider trading on prediction market platforms suggests that Congressional intervention may be warranted.”
The effort to restrict lawmakers' involvement in prediction markets follows the Senate's approval of a resolution in April that prohibits members from engaging with these platforms. This marked a significant regulatory step against government officials participating in such betting activities.
In a related note, White House staff were advised in March against using prediction markets, as reported by The Wall Street Journal. This directive reportedly came one day after President Donald Trump announced a pause in military actions in the Middle East via social media.