Key facts
- House Republicans propose adding limits on election prediction market trades to H.R. 7008.
- The proposed language would restrict contracts tied to elections, government action, and public policy outcomes.
- The bill already aims to restrict lawmakers, spouses, and dependents from buying publicly traded stocks.
- House Oversight Committee Chair James Comer has opened investigations into Polymarket and Kalshi.
- The Senate has passed a resolution banning members from using prediction platforms.
House Republicans are proposing to expand a stalled congressional stock trading ban, H.R. 7008, to include limits on lawmakers' use of election prediction markets. The proposed changes, spearheaded by House Administration Committee Chair Bryan Steil, would specifically target contracts related to elections, government actions, and public policy outcomes, while allowing contracts for sports and entertainment. This move stems from concerns that elected officials could wager on matters they influence, raising insider trading and market integrity issues. The bill already aims to restrict lawmakers, their spouses, and dependents from trading publicly traded stocks and would require seven-day public notices before stock sales. The proposal comes amid increased scrutiny of platforms like Polymarket, which has faced attention for paid online promotions and its role in the 2024 election cycle. House Oversight Committee Chair James Comer has also initiated investigations into Polymarket and Kalshi due to insider trading concerns. The Senate has already passed a resolution banning its members from using prediction platforms, and the House proposal aims to align with a broader federal push for tighter conduct rules. House leaders are expected to schedule a vote on H.R. 7008 during the summer session. Separately, Republicans are focusing on fraud as a campaign issue ahead of the midterms, citing concerns about government spending and oversight. House Republican Conference Chairwoman Lisa McClain highlighted instances of alleged wasteful spending and fraud in government programs, including childcare block grants, emergency aid, and student aid. Representative Austin Scott emphasized the importance of eliminating fraud to maintain taxpayer support for these programs. Democrats, however, argue that Republicans are focusing on the wrong issues, suggesting a need to address affordability and investigate potential fraud within the Trump administration and family. Hearings have been launched into alleged Medicaid fraud, with Representative Brandon Gill making controversial remarks about Somali immigrants and welfare usage, leading to heated exchanges with Ohio State Senator Nickie Antonio.