Hinson-Backed Bill to End DC Insider Trading on Prediction Markets Advances Through Committee

Washington, D.C. — Yesterday, the Hinson-backed Stop Lawmakers from Predicting Act passed out of the House Administration Committee. This legislation prohibits Members of Congress, their spouses, and their dependent children from using prediction markets to gamble on public policy issues and political outcomes. Last week, Congresswoman Ashley Hinson (IA-02) joined Bryan Steil (WI-01) in introducing the legislation.

“I am willing to pursue any and all paths to ban Members of Congress from trading on prediction markets when they’re literally influencing the outcomes of those bets. Prediction markets are blowing up right now, and so are the concerns about DC insiders cashing in on political events using information the public may not have. I’m calling on our House Republican leadership to bring this to the floor immediately — who would vote against this commonsense anti-corruption legislation?” — Congresswoman Ashley Hinson

The Stop Lawmakers from Predicting Act would:

• Ban Members of Congress, their spouses, and their dependent children from utilizing prediction markets to wager on a government policy, government action, or political outcome.
• Require violators to pay a penalty equal to $2,000 or ten percent of the value of the prohibited transaction (whichever is greater), and the net gain realized from the transaction.
• Prohibit Members from using their Representational Allowance, Senate personnel and office expense account, or political contributions or donations to pay the fine.
• Refer former Members who resign or retire without paying the fine to DOJ for civil enforcement.
   

Under current law, Members of Congress are not explicitly prohibited from participating in these markets; this legislation addresses that gap, building on Hinson's previous efforts to ensure bad actors in Washington aren't taking advantage of having insider information.

Hinson introduced a resolution to make a change to House Rules and prohibit Members of Congress, congressional staff, and House officers from entering into agreements tied to the outcome of specific events — effectively banning participation in prediction markets. The Senate has already taken action to prohibit similar conduct, and Hinson has repeatedly called on the House to do the same. 

Hinson is also pushing to stop Members of Congress from trading individual stocks and does not trade stocks. Read more here. The full text of the bill can be found here.