Senators Jeff Merkley and Amy Klobuchar introduced the End Prediction Market Corruption Act to ban federal officials from trading on event contracts. The legislation targets the President, Vice President, Members of Congress, and other public officials who could exploit non-public information for financial gain.

Reports of suspiciously timed bets before Iran strikes and Venezuela military actions sparked the effort. The bill aims to prevent insider trading in prediction markets, where officials might use confidential government information to profit from bets on future events.

The legislation strengthens the Commodity Futures Trading Commission's authority to investigate misconduct and establishes clear rules preventing officials from exploiting their access to nonpublic information. Public Citizen, CREW, and POGO have endorsed the bill.