WASHINGTON, D.C. — House members introduced legislation and called for rule changes in May 2026 to bar members and staff from participating in prediction markets, while the House Oversight Committee opened a formal review of the industry. The push followed two cases this spring in which individuals were accused of using non-public information to profit from event contracts.

Representative Ritchie Torres introduced a bill banning campaign staffers from betting on their own candidates using insider information, and signed a letter calling on House leadership to end abuse in the use of prediction markets by changing the chamber's rules. "The status quo is indefensible. There's no justification for allowing members of a campaign or members of the government to bet on their own decision making," Torres said.

Representative Ashley Hinson proposed a prediction market ban on House members and staff earlier in May and is pushing for a rules change. "Congress isn't a casino. Members shouldn't be able to profit off prediction markets—or stock trades—with insider knowledge. That is wrong and maybe the swampiest thing I've ever heard," Hinson said. She is campaigning for Senate this year.

"I haven't heard anyone argue against a House prediction market ban," Torres said. At least 10 bills on insider trading in prediction markets have been proposed in the House, but the chamber has not moved on a rule change. Speaker Mike Johnson has said he would favor a House ban and that the idea is under discussion. Minority Leader Hakeem Jeffries has said he would urge Johnson to bring a measure to the floor swiftly.

The House Oversight Committee has begun to review prediction market operations. Chairman James Comer said he requested information from prediction market exchanges and threatened to issue subpoenas if they did not provide it.

In April 2026, prosecutors charged a U.S. soldier with using classified information to bet and win more than $400,000 on the removal of Venezuelan leader Nicolás Maduro. In May 2026, a political campaign staffer made thousands of dollars by betting on their own candidate using unreleased polling data.

House members and staff can still bet on prediction markets. House ethics rules make no mention of prediction market bets, known as event contracts, so profits from them are not required to be reported in Congressional financial disclosures, though current rules require members and staff to report profits from other assets such as cryptocurrency, stocks and bonds. Billions of dollars are bet each week on prediction markets on sports, culture, policy and elections. The Commodity Futures Trading Commission oversees and regulates prediction markets and prohibits insider trading under the Commodity Exchange Act.