HR 8123
STOP Corrupt Bets Act of 2026
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Bill overview
The STOP Corrupt Bets Act of 2026 aims to regulate trading in prediction markets by amending the Commodity Exchange Act. Specifically, it prohibits contracts related to political elections, actions by the U.S. government, sporting events, and military actions. However, it includes an exception for contracts used to hedge commercial risk. The bill also directs the Government Accountability Office (GAO) to conduct a study on prediction markets, including potential impacts and ways to address illegal activities, and to report its findings to Congress.
Key provisions
- Prohibits listing or trading of contracts related to political elections, executive/legislative/judicial actions, sporting events, and military actions.
- Allows for hedging of commercial risk under specific circumstances.
- Directs the CFTC to prohibit the availability for clearing or trading of non-hedging prediction market contracts.
- Requires the GAO to conduct a study on prediction markets and their impacts.
- Instructs the GAO to examine prediction markets beyond those currently prohibited.
- Mandates the GAO to recommend strategies for addressing illegal activities in prediction markets.
- States that Congress intends to prohibit conduct prohibited by the amendment.
- Recognizes and preserves existing state laws regarding gambling and gaming.
Who is affected
- Commodity Futures Trading Commission (CFTC)
- Registered Futures Trading Entities
- Participants in prediction markets
- Individuals involved in hedging activities
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119th CONGRESS — 2d Session
H. R. 8123
IN THE HOUSE OF REPRESENTATIVES
A BILL
To amend the Commodity Exchange Act to prohibit certain event contracts on prediction markets, and for other purposes.
This Act may be cited as the Stop Trading On Predictions and Corrupt Bets Act of 2026 STOP Corrupt Bets Act of 2026
or the
.
Section 5c(c)(5) of the Commodity Exchange Act (7 U.S.C. 7a–2(c)(5)) is amended by adding at the end the following:
It is the sense of Congress that—
notwithstanding the amendment made by section 2, the intent of Congress in the Commodity Exchange Act (7 U.S.C. 1 et seq.) is the prohibition of the conduct prohibited by that amendment;
for the purpose of preventing a Federal regulatory structure that permits gambling, the Commodity Futures Trading Commission should prohibit the availability for clearing or trading on or through any registered entity (as defined in section 1a of that Act (7 U.S.C. 1a)) any agreement, contract, transaction, or swap (as defined in that section) that is not used for hedging or mitigating commercial risk; and
nothing in this Act or any amendment made by this Act preempts any State law that regulates or prohibits gambling or gaming.
Not later than 60 days after the date of enactment of this Act, the Comptroller General of the United States shall—
conduct a study on—
prediction markets, including—
the impacts on individuals aged 18 to 20 years old of trading in prediction markets;
additional types of prediction markets that are not prohibited by the Commodity Exchange Act (7 U.S.C. 1 et seq.) (as amended by section 2) for the purpose of preventing a Federal regulatory structure that permits gambling, including by examining any agreement, contract, transaction, or swap (as defined in section 1a of that Act (7 U.S.C. 1a)) that is not used for hedging or mitigating commercial risk; and
means Congress can use to address illegal acts occurring in foreign prediction markets and in domestic prediction markets committed by companies with a presence in a foreign country and in the United States to preserve the integrity of prediction markets; and
make publicly available and submit to Congress a report describing the results of the study conducted under paragraph (1), including recommendations to Congress to preserve the integrity of prediction markets.