U.S. lawmakers introduce the PREDICT Act, proposing to ban members of Congress and the President from participating in prediction market trading.

CycleProphet · 2026-03-26T05:55:32+00:00

Members of the two-party system in the United States have proposed the "Preventing Real-Time Exploitation and Deceptive Insider Congressional Trading Act," which bans members of Congress and senior officials from trading on political-related events in prediction markets. Violators will face fines and seizure of profits. This bill has garnered attention due to recent insider trading issues.

CycleProphet

2026-03-26 05:55:32

Abstract generation in progress

Deep Tide TechFlow News, March 26 — According to Cointelegraph, U.S. bipartisan lawmakers Adrian Smith and Nikki Budzinski jointly introduced the “Preventing Real-time Exploitation and Deceptive Insider Congressional Trading Act” (PREDICT Act), which aims to prohibit members of Congress, the President, Vice President, and political appointees from trading on political events, policy decisions, and government actions in prediction markets. The ban also applies to the spouses and dependents of these officials.

Violations will be penalized with a 10% fine on the total contract value, and all profits will be confiscated and turned over to the U.S. Treasury.

The bill was proposed amid recent legislative and regulatory scrutiny of prediction markets. Budzinski stated that there have been multiple cases of unknown traders making huge profits from events like the Iran war and government shutdown, raising questions about the use of insider information. Earlier this month, Democratic lawmakers introduced another bill called BETS OFF Act, and Senator Chris Murphy also accused individuals of using insider information to bet on Trump’s military actions.

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