STOP Corrupt Bets Act of 2026

The bill changes the Commodity Exchange Act so that certain event contracts cannot be listed or traded on federally registered trading platforms, such as commodity exchanges or swap execution facilities. It bans agreements, contracts, transactions, or swaps based on four types of events: political elections or contests, actions taken by the U.S. executive, legislative, or judicial branches, sporting events or contests, and military actions taken by the United States or any foreign country. The ban also covers indexes, measures, values, data, or contingencies related to these events. There is one narrow exception for contracts based on government actions. If a contract tied to an action by the executive, legislative, or judicial branches is used to hedge or reduce commercial risk, the Commodity Futures Trading Commission (CFTC) may allow it by rule or regulation. In other words, the CFTC could permit certain risk‑management products but not contracts that mainly function as bets. The bill includes a “sense of Congress” section stating that Congress’s intent in the Commodity Exchange Act is to prohibit the types of conduct barred by this new amendment. It further states that, to avoid creating a federal system that allows gambling, the CFTC should bar from registered entities any agreement, contract, transaction, or swap that is not used for hedging or mitigating commercial risk. The bill also states that nothing in it overrides state gambling or gaming laws. Finally, the bill requires the Government Accountability Office (GAO) to study prediction markets within 60 days of the bill becoming law. The study must look at insider trading in prediction markets, the effects of prediction market trading on 18‑ to 20‑year‑olds, other types of prediction markets not already banned that might still function as gambling, and ways Congress could address illegal acts in foreign and domestic prediction markets. GAO must publish a report and send it to Congress, including recommendations to help preserve the integrity of prediction markets.