Senate Bill Seeks to Curb Insider Bets on Prediction Markets

A bipartisan Senate group introduced legislation Thursday to mandate disclosure of prediction market bets by lawmakers and government employees, targeting potential insider trading on nonpublic information. The bill aims to close a regulatory gap by treating prediction market wagers—like those on policy outcomes or economic data—as conflicts of interest akin to stock trades. Disclosures would mirror existing financial reporting rules, requiring public officials to file bets within 45 days, with penalties for noncompliance matching current insider trading laws. Critics argue prediction markets, often decentralized or blockchain-based, may evade enforcement, but sponsors cite rising use of platforms like Polymarket and Augur by officials. The move follows high-profile cases where lawmakers allegedly profited from early knowledge of legislative or economic shifts, amplifying calls for stricter oversight of emerging financial tools.