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Home » Prediction market companies face increased scrutiny as Congress considers rules
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Prediction market companies face increased scrutiny as Congress considers rules

adminBy adminJune 6, 2026No Comments3 Mins Read
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Rep. Brian Still (R-Wis.) speaks with reporters outside the House Republican Conference on Wednesday, March 25, 2026, at the U.S. Capitol.

Tom Williams | CQ-Roll Call Inc. | Getty Images

The leader of a parliamentary committee that oversees the functioning of the House of Representatives said he is working on a bill that would ban sitting members from betting on prediction markets about elections and politics, and that he would like to extend it to former members of Congress and candidates for that office.

Rep. Brian Still (R-Wis.), chairman of the House Administration Committee, told reporters this week that it’s OK for lawmakers to bet on nonpolitical events, such as the outcome of sports games. However, betting on elections and policy (topics that may have access to insider information) will be prohibited on platforms such as Karshi and Polymarket.

“Now that these new types of novel markets are available to consumers at scale, there is a way to clearly put that into the rules,” he told reporters.

Calci and Polymarket officials, as well as some of the site’s traders, met with lawmakers this week as part of a larger effort to make their case about how Washington’s government interacts with prediction markets. In addition to legislation to address insider trading risks, lawmakers are considering how to deal with prediction markets based outside the United States.

The Senate has already changed rules to prohibit senators and their staff from betting on prediction markets, but the House is considering writing a more appropriate ban into law.

While insider trading laws already exist, Steil said it has become important for lawmakers to avoid the appearance of using their elected office for personal gain.

Steil is working with House Republican leaders on a bill that would include this language in a bill that would ban members from buying stocks. The bill was introduced out of committee earlier this year, but has yet to reach a vote on the House floor, despite leadership promising it would pass.

Steil also said he wants a prediction market that is “regulated in the United States, under American values, and protects consumers from outside transactions.”

Such changes could impact Polymarket, the largest prediction market. Polymarket currently has US users banned from major exchanges, but the company is working to gain a legal foothold in the US.

The Commodity Futures Trading Commission regulates prediction markets and has argued in court and in public statements that it, rather than other federal agencies or states, should have exclusive regulatory authority over the industry.

Mr. Polimarquette and Mr. Carsi supported the Senate’s move to ban members from gambling. Mr. Carsi also accused and fined political candidates who used inside information about their race to bet.

Steil plans to introduce member gambling legislation soon, but broader legislation to regulate the market could take longer. These would fall under the jurisdiction of either the House Agriculture Committee or the House Finance Committee.

Time is quickly running out for legislation this year, but there is interest among Democrats in imposing their own restrictions. When asked about changing the Senate’s rules on CNBC’s CEO Council Summit, Minority Leader Hakeem Jeffries of New York said he thought the House “would do the same thing.”

Disclosure: CNBC and Kalsi have a commercial relationship that includes customer acquisition and minority ownership.

Never miss the most trusted news moments in business news when you choose CNBC as your preferred source on Google.



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