Senators Gillibrand and McCormick Introduce Bipartisan Bill To Stop Politicians From Profiting Off Insider Information And Protect Consumers In Prediction Markets

The Prediction Market Act of 2026 bans elected officials from trading on prediction markets, establishes a transparent regulatory framework, and creates strong safeguards for retail investors A majority of Americans support banning officials with insider information from trading event contracts on government actions like war, legislation, and other decisions With this legislation, Gillibrand doubles down on her record to ban members of Congress from owning or trading stocks, criminalize insider trading by congressional members, and clean up corruption and conflicts of interest in Washington U.S. Senators Kirsten Gillibrand (D-NY) and Dave McCormick (R-PA) today introduced the Prediction Market Act of 2026 , landmark bipartisan legislation that establishes regulatory clarity, stops Washington politicians from using non-public information to enrich themselves, and protects consumers from fraud in the rapidly growing prediction market sector. Recent polling by Navigator shows that a majority of Americans support banning officials with insider information from trading event contracts tied to government actions — including war, legislation, and other consequential decisions. Senator Gillibrand’s regulatory framework puts regular Americans first by banning members of Congress, the president and vice president, and senior executive branch officials from trading event contracts, prohibiting deceptive marketing, and mandating strict safeguards for retail investors. “Elected officials should be working for the people they represent — not lining their own pockets with insider information. Americans deserve financial markets that are fair, transparent, and not tilted in favor of those with privileged access,” said Senator Gillibrand. “This commonsense, bipartisan bill puts strong guardrails in place to protect consumers, prevent insider trading, and hold prediction market platforms to standards of integrity.” Prediction markets have expanded dramatically in recent years, with millions of Americans trading event contracts tied to real-world outcomes — economic indicators, weather, elections, and cultural events. Yet the industry has operated with limited regulatory clarity, leaving the door open to insider trading, manipulation, and retail investor harm. The Prediction Market Act of 2026 addresses these risks head-on. Key provisions of the Prediction Market Act of 2026 include: Banning Political Insider Trading: Members of Congress, the president, the vice president, and senior executive branch officials are prohibited from trading on prediction markets. This prevents politicians with access to sensitive government information from unfairly profiting at the expense of everyday Americans. Establishing Clear Insider Trading Standards: The bill directs the Commodity Futures Trading Commission (CFTC) to prohibit trading on material nonpublic information and to define enforceable insider trading standards tailored specifically to prediction markets. Protecting Customer Funds: Firms must meet strict financial protection standards, including full segregation of customer funds and a ban on commingling, ensuring that customer assets are fully protected at all times. Safeguarding Vulnerable Consumers: The bill requires self-exclusion programs and mandatory age verification to protect vulnerable consumers from predatory practices. Strengthening Illicit Finance Safeguards: Platforms must comply with Bank Secrecy Act –level requirements, including customer due diligence, transaction monitoring, and suspicious activity reporting. Creating an Office of the Retail Advocate: A new, independent office within the CFTC will champion everyday investors, assist consumers with disputes, and hold bad actors accountable. Creating an Advisory Council on Consumer Protection : A new Advisory Council on Consumer Protection within the CFTC brings together regulators, law enforcement, consumer advocates, and market participants to strengthen oversight of retail activity in prediction markets. Preserving State Consumer Protections: The bill maintains robust federal oversight while preserving state authority to enforce consumer protection laws, ensuring comprehensive, layered supervision. Senator Gillibrand has spent nearly two decades leading the fight against corruption and insider trading in Congress. In 2012, she led the passage of the STOCK Act — one of the first major laws to explicitly ban insider trading by members of Congress and require public disclosure of their trades. Building on that foundation, she has continued to champion stronger ethics rules through bipartisan legislation like the Restore Trust in Congress Act , which would fully ban members of Congress and their families from owning or trading individual stocks — and now, this bill to close emerging loopholes in prediction markets. Full text of the Prediction Market Act of 2026 can be found here and a summary of the legislation here . # # #