STOP Corrupt Bets Act of 2026

This bill amends the Commodity Exchange Act to ban certain event contracts on prediction markets. It prohibits listing or trading contracts related to political elections, U.S. government actions (with a hedging exception), sporting events, and military actions. It also requires a study on prediction markets.

Sec. 2, Prohibition on certain event contracts: This section adds a new rule to the Commodity Exchange Act that bans any registered entity from listing or clearing contracts involving political elections, U.S. executive, legislative, or judicial actions, sporting events, or military actions by the U.S. or any foreign country. However, contracts related to U.S. government actions are allowed if used for hedging or mitigating commercial risk, as determined by the Commodity Futures Trading Commission.

Sec. 3, Sense of Congress: This non-binding section states Congress's view that the Commodity Exchange Act already intends to prohibit gambling-like contracts, and that the Commodity Futures Trading Commission should ban any contract not used for hedging commercial risk. It also clarifies that this bill does not override state laws regulating gambling.

Sec. 4, GAO study: Within 60 days of enactment, the Government Accountability Office must study prediction markets, including insider trading, impacts on people aged 18-20, additional types of markets not banned, and ways Congress can address illegal acts in foreign and domestic prediction markets. It must then publish a report with recommendations to Congress.