Gate News: U.S. Congress members are pushing for key legislation targeting prediction markets, proposing a comprehensive ban on presidents, members of Congress, and senior government officials from participating in related trading. The bill, jointly introduced by Adrian Smith and Nikki Budzinski, is called the “PREDICT Act,” focusing on cracking down on insider trading for profit in political and policy events.
Budzinski pointed out that recently, some traders have made significant profits by betting on sensitive events like the Iran conflict and government shutdowns, causing concerns over information asymmetry in the market. The new law will restrict presidents, vice presidents, members of Congress, and political appointees from engaging in prediction market trading, with the scope also covering spouses and dependents.
Under the proposal, violators could face fines equal to 10% of the total contract value and be required to turn over all profits to the U.S. Treasury. Legislators emphasize that this move aims to close regulatory loopholes and prevent those with policy information from profiting.
Meanwhile, U.S. regulators continue to tighten scrutiny of prediction markets. Investigations are underway at federal and state levels regarding the legality of contracts related to politics, sports, and war. More than 10 states have filed or are preparing to file lawsuits against related platforms, focusing on whether their products constitute disguised gambling.
Additionally, John Curtis and Adam Schiff have proposed another bill to ban prediction contracts similar to sports betting from operating under regulatory frameworks, criticizing the leniency of current regulatory agencies toward the industry. In response to policy pressure, platforms like Kalshi and Polymarket have begun tightening rules to restrict participation by certain groups.
Analysts believe the U.S. is trying to balance innovative financial tools with market fairness. Prediction markets may face stricter compliance in the future, which could have a profound impact on capital flows and market activity.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Kalshi Traders Forecast XRP to Hit $1.60 in April
Kalshi traders predict XRP will reach $1.60 in April amid rising demand and significant ETF inflows. With a bullish technical outlook and upcoming regulatory votes, XRP's market dynamics show potential for further gains, despite risks of declining support levels if outcomes are unfavorable.
CryptoFrontier6h ago
Premier League Tottenham vs Brighton is a crucial matchup, with Polymarket forecasting a 50% chance that Tottenham will be relegated
Tottenham Hotspur this season has surged from Europa League champions all the way to the relegation zone, facing a relegation battle. In the 14 matches without a win, the team has been hit by a series of injuries and a change in head coach, and an ESPN report says that poor passing ability is a key factor. Sunday’s match against Brighton will be a do-or-die game for survival; if they lose, it will seriously affect morale and the standings. Successful survival requires three major conditions, and for a former “pyramid” club, relegation will inevitably cause a major loss.
ChainNewsAbmedia11h ago
Hong Kong SFC Investment Committee Warns Prediction Market Trading May Constitute Illegal Gambling
The Hong Kong SFC warns that prediction markets are speculative and not investment products, lacking regulatory protection. They involve gambling elements, potentially making them illegal. The committee urges the public to differentiate between investment and gambling.
GateNews14h ago
Prediction Markets Show Stark Wealth Concentration: 84% of Traders Lose Money
Prediction markets show stark wealth concentration, with 84.1% of Polymarket traders losing money, while just 0.04% hold over 70% of profits. Legislative efforts like the BETS OFF Act aim to regulate betting on sensitive events, as concerns rise over user protections amid the entry of major financial institutions.
GateNews22h ago
DAZN Partners with ADI Predictstreet to Launch Blockchain Prediction Market for 2026 World Cup
DAZN partners with ADI Predictstreet to introduce a blockchain prediction market for the 2026 FIFA World Cup. Users can engage in real-time predictions, utilizing advanced technology for privacy and scalability, despite regulatory challenges in Europe.
GateNews04-17 14:31
Hong Kong Suspends Basketball Betting Project Amid Concerns Over Prediction Markets and Illegal Gambling
Hong Kong's government has suspended its basketball betting project due to concerns over the rapid growth of prediction markets linked to illegal gambling. With monthly trading volumes rising dramatically, authorities aim to enhance public education and collaborate on measures against gambling.
GateNews04-17 08:01
