Lack of Disclosure Laws for Prediction Market Trades Raises Concerns Among Lawmakers
Current ethics laws require federal politicians and high-ranking government officials to disclose stock trades, but there is no similar requirement for prediction market trades. This has raised concerns about transparency and potential insider trading. Lawmakers are required to report sources of outside income over $200, but detailed disclosure of prediction market trades is not mandated. The largest prediction market in the U.S., Kalshi, automatically bans members of Congress from trading on its platform. The White House has also warned staffers against trading on prediction markets amid the Iran war. A new bill, the Public Integrity in Financial Prediction Markets Act of 2026, aims to close this disclosure gap by requiring detailed reporting of prediction market trades by government officials. 
