WASHINGTON, D.C. — Representative Bryan Steil introduced a provision to prohibit congressional lawmakers and their families from engaging in prediction market betting on policy, politics, and elections. This provision will be added to existing legislation aimed at restricting members of Congress from purchasing new individual stock shares, with an exception for those bought with dividends from existing holdings.

The measure dictates that lawmakers with insider knowledge for such wagers would face a penalty. This penalty includes a payment of $2,000 or 10% of the transaction value, whichever amount is greater, in addition to forfeiting any profits gained. The provision does not extend to non-political events, allowing lawmakers and their families to place bets on activities such as sports.

House Speaker Mike Johnson and President Donald Trump have both voiced support for a legislative ban on stock trading by members of Congress. Republican lawmakers have pledged that the legislation is slated for a vote on the House floor.

Prediction markets, including platforms like Kalshi and Polymarket, have been reviewed. The Senate previously implemented a rule change earlier this year, which bars senators and their staff from participating in prediction market betting. For the legislation to become law, it must pass in the Senate.

Steil, who chairs the committee responsible for establishing rules for House lawmakers and their staff, noted that some areas of prediction markets do not create ethical complications. Steil said, "Some avenues of prediction markets I don't think create the ethical complications that other areas do." However, the broader stock trading ban currently lacks Democratic support because it applies only to lawmakers and exempts President Trump.