House Lags Senate on Prediction Market Trading Ban

Lawmakers in both parties have identified a clear gap in congressional ethics rules that allows House members and staff to place bets on prediction markets using information unavailable to the public. The Senate already adopted a chamber-wide prohibition, yet the House has taken no equivalent step even as documented cases show government employees profiting from non-public data. A U.S. soldier was charged in April with using classified material to win more than $400,000 on a market tied to the removal of Venezuelan leader Nicolás Maduro, according to court records. A separate May report described a campaign staffer earning thousands by betting on internal polling results before they became public. Rep. Ritchie Torres, D-N.Y., introduced legislation last week to bar campaign staffers from such bets and joined a bipartisan letter urging House leadership to change chamber rules immediately. Rep. Ashley Hinson, R-Iowa, offered a parallel proposal earlier this month. Speaker Mike Johnson told reporters the idea has support but requires further consensus building. Minority Leader Hakeem Jeffries expressed backing for swift action. The Commodity Futures Trading Commission already prohibits insider trading under existing law, yet lawmakers including former regulators argue that election and policy contracts require updated statutory language. House ethics rules currently require disclosure of stock, bond, and cryptocurrency holdings but contain no parallel requirement for event contracts. The House Oversight Committee has begun requesting information from platforms including Kalshi and Polymarket, with Chairman James Comer indicating subpoenas remain possible. No bill has advanced beyond introduction despite more than a dozen proposals this year.