US Bill Targets Prediction Markets, Seeks to Ban President and Congress from Trading

A new legislative proposal aims to directly bar the US President and members of Congress from participating in prediction markets, escalating a regulatory crackdown on the controversial industry. The bill represents a significant political move to address growing concerns that such platforms could be exploited for insider trading or to profit from sensitive government information, including war contracts and policy outcomes.

The proposed legislation adds to a recent wave of actions at both the federal and state levels targeting prediction markets. These platforms, which allow users to bet on the outcomes of political events, sports, and other future occurrences, are facing intensifying scrutiny. The core allegation driving the push is that these markets could enable individuals with non-public knowledge—particularly those in positions of power—to place advantageous bets, raising profound ethical and legal questions.

The bill signals mounting pressure on the prediction market sector, potentially affecting platforms like Kalshi and Polymarket. Its introduction reflects broader anxieties about the intersection of gambling, financial speculation, and government integrity. If passed, it would impose a direct and unprecedented restriction on federal officials, setting a new precedent for conflict-of-interest rules and potentially chilling the growth of political prediction markets in the United States.