Smith, Budzinski Introduce Bipartisan Bill to Ban Members of Congress, Federal Officials from Prediction Market Trading

Today, Congressman Adrian Smith (R-NE-03) and Congresswoman Nikki Budzinski (D-IL-13) introduced the Preventing Real-time Exploitation and Deceptive Insider Congressional Trading Act (PREDICT Act),a bipartisan effort to prohibit senior government officials from participating in insider prediction market trading.

The PREDICT Act would prohibit Members of Congress, their spouses and dependent children; the President and Vice President; and political appointees, including individuals serving in Executive Schedule positions, among others, from trading on the outcomes of political events, policy decisions, and other government actions on prediction markets.

"Serving the American people is a privilege, not a pathway to profit. Our commonsense, bipartisan bill will give Americans confidence that the decisions of their elected officials are guided by merit, not personal profit. I am proud to partner with Representative Budzinski to ensure that government officials do not profit from the sensitive information entrusted to them,"said Smith.

"The American people are tired of politicians using their influence for personal gain, and the rise of prediction markets has made those concerns even more relevant. In recent months, we've seen instances of little-known traders making massive profits on events ranging from war with Iran to how long a government shutdown will last, raising necessary questions about the use of inside information. I am excited to be working with Representative Smith to close that loophole and ensure that those with access to sensitive information cannot profit from it,"said Budzinski.

Violations of the PREDICT Actwould result in a civil penalty equal to 10 percent of the value of the prohibited transaction, as well as full disgorgement of any profits earned, to be paid into the U.S. Treasury.

Click hereto read the full text of the bill.