Senate targets insider trading in prediction markets with new bill

A bipartisan group of senators introduced the Public Integrity in Financial Markets Act of 2026 to bar lawmakers, the president, congressional staff and other federal officials from trading on insider information through prediction markets like Kalshi and Polymarket. The bill would define insider information as nonpublic information that a reasonable investor would view as material to a prediction-market contract, signaling Washington’s intensified effort to curb potential conflicts of interest as these platforms gain prominence. The move follows other related proposals and ongoing scrutiny of prediction markets from lawmakers and regulators.