Republican Lawmaker Plans to Add Prediction Markets to Congressional Stock Ban Bill

Rep. Bryan Steil (R-WI), chair of the House Administration Committee, announced plans to add language to the House congressional stock ban bill to explicitly cover prediction markets such as Polymarket and Kalshi. The amendment aims to prevent lawmakers from trading on elections or public policy outcomes, addressing growing concerns about potential conflicts of interest. Steil stated during a roundtable that public sentiment opposes such trades, reinforcing the need for broader restrictions. The current bill, H.R. 7008, prohibits lawmakers, spouses, and dependents from purchasing publicly traded stocks and requires a seven-day public notice before selling investments. Violators face fines equal to $2,000 or 10% of the investment’s value, whichever is greater, along with the forfeiture of any gains. The bill was reported to the House in February but has yet to advance beyond committee review. Steil’s proposal comes amid heightened scrutiny of prediction markets, including investigations by the House Oversight Committee led by Rep. James Comer (R-KY). Comer’s office launched probes into Polymarket and Kalshi in May, citing alleged insider trading tied to military activities and national security concerns. A U.S. soldier was previously charged with insider trading on Polymarket related to Venezuela’s political situation. The Senate already took action in April, passing a resolution banning senators and staff from using prediction markets, marking the first federal regulatory move against these platforms. Meanwhile, the White House issued internal guidance in March prohibiting staff from placing wagers on prediction markets, following President Trump’s social media announcement of a Middle East ceasefire. The expanded House bill could face a vote this summer, though it remains unclear whether the Senate will align with the stricter measures. Steil expressed optimism about the House’s ability to act, but the bill’s future depends on broader political momentum and bipartisan support.