Gillibrand, McCormick introduce Prediction Market Act to ban congressional trading
Sens. Kirsten Gillibrand (D-N.Y.) and Dave McCormick (R-Pa.) introduced the bipartisan Prediction Market Act of 2026 on May 1, placing new restrictions on the event-contract industry. The bill bans elected officials from trading on prediction markets and directs regulators to take additional action against the sector, aiming to prevent lawmakers from profiting off non-public information. The legislation comes alongside a resolution from Rep. Dina Titus that would extend existing stock-trading restrictions on Congress members and staff to prediction markets. The pairing of a New York Democrat and Pennsylvania Republican signals rare cross-party concern as platforms like Kalshi and Polymarket draw heavier congressional scrutiny during a period of rapid industry expansion.
Kalshi and Polymarket must now prepare for federal rulemaking that could force platform-level Know-Your-Customer upgrades to enforce the congressional ban, adding compliance costs before any final rules are even drafted.