U.S. House Delays Ban on Prediction‑Market Betting Amid Insider‑Trading Concerns

House members and staff can still trade on prediction‑market event contracts, despite bipartisan calls for a prohibition. The Senate has already banned such activity for its members, and the White House issued a memo warning federal employees against using platforms like Kalshi and Polymarket.

Recent insider‑trading cases have intensified scrutiny: a U.S. soldier was charged with using classified information to win more than $400,000 by betting on the removal of Venezuelan leader Nicolás Maduro, and an unnamed campaign staffer reportedly earned "thousands" by betting on their own candidate using unreleased polling data.

Democratic Rep. Ritchie Torres (NY) introduced legislation to bar campaign staffers from betting on their own candidates and signed a bipartisan letter urging House leadership to ban prediction‑market trading outright. Republican Rep. Ashley Hinson (IA), a Senate candidate, also supports a ban, calling congressional betting "the swampiest thing" she’s heard. Speaker Mike Johnson (LA) said a ban is “an idea we’re talking about” but needs consensus, while Minority Leader Hakeem Jeffries (NY) voiced support for swift action. Ethics rules currently lack guidance on reporting prediction‑market profits, a gap that former House Ethics Committee counsel Blake Chisam described as a "blind spot." The Commodity Futures Trading Commission oversees these markets, but lawmakers argue new regulations may be required to prevent political or military insider betting.