Senator Dave McCormick and Senator Kirsten Gillibrand introduced the Prediction Market Act of 2026 on April 30, aiming to establish a regulatory framework for prediction markets in the United States.
The legislation is intended to provide clear rules for event contracts, increase transparency, and protect everyday investors. Supporters say this will help maintain the country’s leadership in financial innovation while addressing gaps in consumer protection as these markets grow.
“Prediction markets are already changing how Americans understand and manage risk,” said Senator McCormick. “This legislation gives these markets the clear rules they need to grow responsibly, protects everyday investors who are participating in them, and ensures the United States remains the global leader in financial innovation.”
Senator Gillibrand said, “Elected officials should be working for the people they represent — not lining their own pockets with insider information. Americans deserve financial markets that are fair, transparent, and not tilted in favor of those with privileged access. This commonsense, bipartisan bill puts strong guardrails in place to protect consumers, prevent insider trading, and hold prediction market platforms to standards of integrity.”
The proposed bill would define key terms related to event contracts to reduce uncertainty; require individual review of certain contracts; set enhanced certification standards; mandate safeguards such as Know-Your-Customer requirements; prohibit lawmakers from owning event contracts; create a Commodity Futures Trading Commission Office of the Retail Advocate; establish an Advisory Council on Consumer Protection; form an Innovation Advisory Committee; and require regular CFTC reports on market developments.
McCormick served as a captain in the 82nd Airborne Division during the First Gulf War according to his official website. He grew up in Bloomsburg as the son of educators according to his official website, earned a doctorate from Princeton University after graduating from West Point according to his official website, held roles as CEO at FreeMarkets and Bridgewater Associates as well as under secretary of Treasury and deputy national security advisor according to his official website, and focuses on energy innovation, border security, cost reduction measures, national defense initiatives, crime prevention strategies, competition with global rivals, government reform efforts and community enhancement according to his official website.
Currently operating under Commodity Futures Trading Commission oversight with anti-fraud protections already present for prediction markets participants—retail participation has increased rapidly outpacing existing laws. The new legislation seeks both improved clarity for users while preserving innovative aspects that benefit public forecasting.
