US cracks down on prediction markets with 14 new bills in 2026
US lawmakers have introduced a wave of new bills targeting prediction markets in 2026. Fourteen proposals, covering 11 distinct measures, were put forward in March alone. The push follows growing concerns over insider trading and the ethical risks of certain contracts. The first major bill, the Public Integrity in Financial Prediction Markets Act of 2026, set the tone for stricter oversight. Shortly after, 12 more proposals emerged, each addressing different aspects of the industry.
Three key bills stand out for their broad restrictions. The BETS OFF Act blocks markets linked to military operations and sensitive government decisions. The STOP Corrupt Bets Act goes further, banning contracts tied to elections, sports, and all government activity. Meanwhile, the DEATH BETS Act prohibits wagers on death, violence, and national security events. Beyond these, other measures focus on preventing government officials with access to nonpublic information from trading. Over 40 members of Congress reinforced these concerns in a joint letter to the Commodity Futures Trading Commission (CFTC) and the Office of Government Ethics. They called for stronger safeguards against insider trading in prediction markets. The debate escalated on April 2, 2026, when the CFTC and Department of Justice filed lawsuits against Arizona, Connecticut, and Illinois. The legal action aimed to block state-level regulations, asserting that federal law holds exclusive jurisdiction over CFTC-registered event contract markets.
The flurry of legislation reflects a broader effort to tighten control over prediction markets. With 14 bills now under consideration, lawmakers are targeting everything from election-related wagers to national security concerns. The outcome of these proposals—and the ongoing legal disputes—will shape how these markets operate in the future.
