Congressman Bryan Steil introduced the Stop Lawmakers from Predicting Act. The document bars members of Congress, their spouses and minor children from wagering money on politics and government decisions using prediction markets.

Steil is a Republican from Wisconsin; he chairs the Committee on House Administration. The initiative was prompted by concerns that lawmakers could profit from non-public information unavailable to ordinary market participants.

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What exactly the bill prohibits

The document builds on another project — the Stop Insider Trading Act, which the committee approved on January 14. According to Steil, the new initiative is meant to finally close the loophole for government officials.

"Americans must be confident that their congressman is not profiting from insider information. Lawmakers should write laws, not bet on their outcome," Steil said.

The ban applies to congressmen, their spouses and minor children and covers wagers on specific government decisions, actions of the authorities and the outcomes of political decisions. A violation carries a fine — $2,000 or 10% of the wager amount, whichever is greater. Any profit received will have to be returned.

Paying the fine out of official expenses, Senate funds or political donations will not be possible. And those who resign or end their career without paying the fine may be referred to the U.S. Department of Justice for a civil lawsuit. At the same time, wagers on non-political events — for example, on sports — are not affected by the law.

Source: BeInCrypto