The same party that largely let prediction markets flourish is now writing rules to rein them in. Rep. Bryan Steil, a Wisconsin Republican, is drafting legislation that would prohibit current and former members of Congress, their staff, and candidates from placing wagers on electoral and political outcomes through platforms like Kalshi and Polymarket.
The bill is designed to attach to an existing piece of legislation that addresses stock trading among lawmakers. The people who write the laws and shape political outcomes would be barred from profiting off their own influence in prediction markets.
A flood of bills, not a trickle
This isn’t a one-off proposal. Since January 2026, more than ten bills targeting insider trading and prediction markets have been introduced in Congress. Some focus specifically on sports-like betting contracts, while others take a broader swipe at the entire prediction market ecosystem.
The Senate Commerce Committee held hearings in May 2026 that took direct aim at platforms like Kalshi. Lawmakers raised concerns about gambling, public trust, and the potential for these markets to distort political discourse.
