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

Steil — a Republican from Wisconsin, chairs the House Committee on Administration. The initiative was prompted by concerns that lawmakers could profit from closed 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 close a loophole in trust toward government officials.

«Americans must be confident that their congressman is not profiting from insider information. Lawmakers should be making laws, not placing bets 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 outcomes of political events. The penalty for a violation is a fine — $2,000 or 10% of the wager amount, whichever is greater. Any profit earned will have to be returned.

Paying the fine from official funds, Senate resources or political donations will not be allowed. And those who take part in a wager or open an account in defiance of the ban may, in addition to the fine, be referred to the US Department of Justice for a civil suit. Bets on non-political events — for example, on sports — are not affected by the ban.

Source: BeInCrypto