Sens. Dave McCormick, R-Pa., and Kirsten Gillibrand, D-N.Y., introduced legislation Thursday that would update federal commodities regulation for prediction markets as the Trump administration seeks to assert its jurisdiction over them.
The bill, shared first with Semafor, comes amid Commodity Futures Trading Commission Chair Mike Selig’s argument in courts across the country that his agency should regulate the markets as derivatives exchanges, taking authority from states that want to treat them like casinos.
The proposal would specifically define terms like event contracts while also requiring exchanges to implement safeguards against advertising, illicit finance, and fund segregation.
It would ban lawmakers and administration officials from trading and create an Office of the Retail Advocate, as well as a consumer protection council and innovation committee, at CFTC.
“This legislation gives these markets the clear rules they need to grow responsibly [and] protects everyday investors,” McCormick said.
McCormick and Gillibrand introduced the bill just as the Senate adopted a measure banning senators from trading on prediction markets — a sign that legislation addressing the platforms is gaining traction.
There are a variety of proposals in Congress to regulate prediction markets, including bills that would prohibit bets on things like death, war and sports on platforms including Kalshi and Polymarket.
Some lawmakers also want legislation that could push back on Selig’s offensive by affirming states’ authority to rein in the platforms.
“While we don’t agree on everything in this bill, we strongly support it,” Kalshi’s Tarek Mansour told Semafor of McCormick and Gillibrand’s legislation. “It presents a comprehensive and thoughtful approach to addressing genuine concerns raised by members on both sides of the aisle around customer protection and market integrity.”