Rep. Bryan Steil (R-WI) signaled on Thursday that lawmakers plan to add language covering prediction markets to a House congressional stock ban bill, H.R. 7008, which was reported to the House in February. The expansion aims to address concerns that members of Congress should not make trades on elections or public policy through platforms such as Polymarket and Kalshi. The move follows a broader federal regulatory push against prediction markets, including a Senate resolution banning member wagers passed in April and House Oversight Committee investigations launched late last month into potential insider trading activity on these platforms.
H.R. 7008 Current Provisions Detail Stock Ban and Penalties
The bill, known as H.R. 7008, would completely ban lawmakers, spouses, and dependents from purchasing publicly traded stocks. The legislation requires members to file "intent to sell" notices disclosed publicly at least seven days before sales occur. Violators face fees equal to $2,000 or 10% of the investment's value—whichever is greater—plus the forfeiture of any realized gains. The bill does not explicitly cover digital assets in its latest version.
The bill has sat idle since it cleared committee hurdles in February and was added to the chamber's calendar, making it eligible for debate and a vote before the Senate gets a chance to weigh in. Steil reportedly said he's hopeful the House could vote on the bill this summer.
Steil Signals Prediction Market Addition to Stock Ban Bill
Steil, who leads the House Administration Committee, told reporters during a roundtable that lawmakers plan to add language to the stock ban bill to cover platforms such as Polymarket and Kalshi, per Bloomberg Government. "In my conversations with members and just the broad public, I don't think anyone believes that members of Congress should be making trades on elections or making trades on public policy," he said.
Steil's comments come amid growing backlash from lawmakers who contend that the platforms have the potential to undermine market integrity or threaten national security, often pointing to a U.S. soldier's alleged trades on military activity in Venezuela.
House Oversight Launches Investigations into Polymarket and Kalshi
Late last month, the leader of the House Oversight Committee, James Comer (R-KY), launched investigations into Polymarket and Kalshi, saying that a "growing pattern of insider trading activity on prediction market platforms indicates that Congressional action may be necessary."
Senate and White House Implement Prediction Market Restrictions
The push to clamp down on lawmakers' use of prediction markets follows the Senate's passage of a resolution in April banning members from the platforms. The decision marked the first major regulatory action prohibiting government officials from making such wagers.
White House aides were instructed in March not to place wagers on prediction markets, per The Wall Street Journal. The directive reportedly came a day after President Donald Trump unveiled a pause to the fighting in the Middle East via social media.
FAQ
What did Rep. Steil propose on Thursday regarding the congressional stock ban bill?
Rep. Bryan Steil (R-WI) signaled on Thursday that lawmakers plan to add language to H.R. 7008 to cover prediction market platforms such as Polymarket and Kalshi, expanding the bill beyond its current focus on publicly traded stocks.
What penalties does H.R. 7008 impose on violators?
The bill imposes fees equal to $2,000 or 10% of the investment's value—whichever is greater—plus the forfeiture of any realized gains for lawmakers, spouses, or dependents who violate the stock purchase ban.
What actions have federal bodies taken against prediction markets?
The Senate passed a resolution in April banning members from prediction market platforms, House Oversight launched investigations into Polymarket and Kalshi late last month, and White House aides received instructions in March prohibiting wagers on prediction markets.
