STOP Corrupt Bets Act of 2026

The STOP Corrupt Bets Act of 2026 (S. 4226) was introduced in the Senate on March 26, 2026, by Senator Merkley (D-OR) and four cosponsors. It has been read twice and referred to the Committee on Agriculture, Nutrition, and Forestry. This places the bill in the early stages of the legislative process, requiring committee consideration before it can advance further. The bill does not authorize or appropriate any specific funding. Its primary mechanism is regulatory, amending Section 5c(c)(5) of the Commodity Exchange Act to prohibit agreements, contracts, transactions, or swaps involving specific matters on prediction markets. These matters include political elections, actions by any branch of the U.S. government (with an exception for hedging commercial risk), sporting events, and military actions. The bill also includes a Sense of Congress emphasizing the intent to prohibit such conduct and calls for a GAO study. Companies operating prediction markets or offering event contracts related to the prohibited categories would be negatively impacted by this legislation. While no specific tickers are provided, platforms that facilitate trading on political outcomes, government actions, or sporting events would face significant operational restrictions if this bill were to become law. The bill explicitly states that such contracts may not be listed or made available for clearing or trading on or through a registered entity. The exception for hedging or mitigating commercial risk related to governmental actions is narrow and would require determination by the Commodity Futures Trading Commission (CFTC). Given its early stage, the bill's timeline is uncertain. It must first pass through the Committee on Agriculture, Nutrition, and Forestry, then potentially be voted on by the full Senate, and subsequently go through a similar process in the House of Representatives before it could be sent to the President for signature. The presence of five sponsors, including Senator Merkley and Senator Warren, indicates a degree of legislative interest, but the bill's ultimate passage is not guaranteed.