Bipartisan lawmakers introduce PREDICT Act to bar federal officials from prediction markets

U.S. Representatives Adrian Smith (R-Neb.) and Nikki Budzinski (D-Ill.) introduced the bipartisan Preventing Real-time Exploitation and Deceptive Insider Congressional Trading Act, or PREDICT Act, to ban federal officials from wagering on political and policy events in prediction markets. The restrictions would apply broadly to members of Congress, the president, vice president, political appointees, and senior federal employees, including their spouses and dependent children. Violators would face a civil fine of 10% of the transaction value and forfeit profits to the U.S. Treasury. The move comes amid mounting scrutiny over highly accurate bets on events like military developments, raising concerns that insiders might be trading on nonpublic information. In response to public backlash and regulatory pressure, prediction market platforms have also tightened controls, and the CFTC plans to establish clearer federal rules for the sector.

(Source：The Block)