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 (executive, legislative, or judicial), sporting events, and military actions, with a hedging exception for government actions. It also requires a study on prediction markets.

Sec. 2, Prohibition on certain event contracts: This section adds a new prohibition to the Commodity Exchange Act. No registered entity may list or make available for trading any contract involving political elections, U.S. government actions, sporting events, or military actions. 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 intended to prohibit such contracts, that the Commodity Futures Trading Commission should ban all contracts not used for hedging commercial risk to prevent a gambling regulatory structure, and that this Act does not override state gambling laws.

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