As concerns grow over insider trading on prediction markets, a House panel advanced a bill Wednesday that would curb how lawmakers can use them.
House Administration Chair Bryan Steil, R-Wis., described his proposal as a narrow but important “step in restoring public trust.” With the midterm elections approaching, congressional approval ratings are hovering near record lows, and both parties are eager to clean up that image.
But Democrats on the panel withheld their support, saying the bill wouldn’t go far enough.
Steil’s measure would prohibit members of Congress, their spouses and dependent children from participating in prediction market transactions related to a specific government policy, a government action, a political outcome or an event that comes to their attention through their congressional service.
It would allow the House and Senate ethics panels to impose fines of $2,000 or 10 percent of the value of the transaction, whichever is greater, as well as the net gain. Those who resign or retire without paying the fine could be referred to the Justice Department.
