Amending the Rules of the House of Representatives to prohibit Members of the House from entering into certain agreements, contracts, or transactions with respect to prediction markets.
- Bill Number
- H.Res. 1263
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Congress
- Status
- Introduced
- Latest Action
- 2026-05-07: Referred to the Committee on Ethics, and in addition to the Committees on the Judiciary, and Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Last Updated
- 2026-06-19T08:06:00Z
AI-Generated Summary
Purpose
This House Resolution (H. Res. 1263) aims to update the internal rules of the U.S. House of Representatives to ban members and staff from participating in prediction markets. Prediction markets are betting platforms where contracts pay out based on whether specific events (like elections) occur.
Key Provisions
- Amends Rule XXIII: Inserts a new clause 22 prohibiting any Member, Delegate, Resident Commissioner, officer, or employee of the House from entering (or offering to enter) agreements, contracts, swaps, or transactions involving excluded commodities (defined in the Commodity Exchange Act as event-based contracts dependent on specific outcomes or contingencies).
- Exception: Does not apply to standard insurance policies where the policyholder has a legitimate financial stake (called an "insurable interest").
- Sense of the House (Section 2): Encourages the executive branch (e.g., President and agencies) and judicial branch (e.g., courts and judges) to adopt similar restrictions, though this is non-binding.
Significant Changes to Existing Law
- Adds a entirely new clause (22) to Rule XXIII, shifting the prior clause 22 to 23.
- Introduces the first explicit House rule targeting prediction market trading, closing a gap in prior ethics rules that did not specifically address these event-based financial instruments.
Potential Impacts
- On House operations: Strengthens ethics enforcement by the House Committee on Ethics, potentially reducing risks of insider trading on political events.
- On citizens: Indirectly promotes public trust in Congress by limiting members' personal financial gains from speculating on government actions or elections.
- No direct impact on government agencies beyond the House, citizens' market access, or international relations; the "sense of the House" may inspire voluntary policy changes elsewhere.
Main Stakeholders Affected
- Primary: House Members, Delegates, Resident Commissioner (Puerto Rico's representative), officers, and employees—directly barred from prediction market deals.
- Secondary: House ethics committees (Oversight, Judiciary, Ethics) tasked with enforcement; prediction market operators (e.g., platforms like Kalshi or Polymarket) facing reduced participation from lawmakers.
Notable Legal, Constitutional, or Political Implications
- Legal: Modifies only internal House rules (not federal statutes), so enforceable via House procedures like censure or expulsion; references the Commodity Exchange Act for clarity on "excluded commodities" (unregulated event contracts).
- Constitutional: Aligns with Congress's authority over its own rules (Article I, Section 5); no broader First Amendment issues as it targets official conduct, not speech.
- Political: Addresses concerns over conflicts of interest or "gambling on politics," potentially boosting transparency amid rising use of prediction markets for forecasting events like elections; non-binding "sense" provision signals bipartisan ethics push without mandating action.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (2)
Rep. Bergman, Jack [R-MI-1], Rep. Mackenzie, Ryan [R-PA-7]
Recent Actions
- 2026-05-07: Referred to the Committee on Ethics, and in addition to the Committees on the Judiciary, and Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2026-05-07: Referred to the Committee on Ethics, and in addition to the Committees on the Judiciary, and Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2026-05-07: Referred to the Committee on Ethics, and in addition to the Committees on the Judiciary, and Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2026-05-07: Submitted in House
Bill Versions
- Amending the Rules of the House of Representatives to prohibit Members of the House from entering into certain agreements, contracts, or transactions with respect to prediction markets. — issued 2026-05-07 — PDF (2 pages)