---
type: entity
entity_type: organization
name: Prediction Market Act 2026
domain: internet-finance
tags: [legislation, prediction-markets, CFTC, event-contracts]
status: active
---

# Prediction Market Act 2026

## Overview
Bipartisan federal legislation introduced by Senators Dave McCormick and Kirsten Gillibrand in May 2026 to establish federal framework standards for prediction markets. The bill would create statutory definitions of event contracts and resolve the state-federal jurisdiction battle through congressional action rather than judicial case-by-case preemption.

## Key Provisions
- Establishes federal statutory definition of event contracts (scope unknown)
- Creates framework standards for prediction market regulation
- Potentially preempts state gambling law enforcement against federally-compliant platforms
- Competes with Senator Blumenthal's more restrictive "Prediction Markets Security and Integrity Act"

## Significance
Represents legislative resolution path to the CFTC-state jurisdiction battle. If enacted, would supersede the ongoing multi-state litigation by creating comprehensive federal standards. The bill's treatment of governance markets (futarchy) versus sports/election prediction markets is unknown.

## Timeline
- **2026-05-05** — Bill introduced by McCormick-Gillibrand
- **2026-05-05** — Senate unanimously passed resolution restricting congressional trading on prediction markets (separate symbolic measure)

## Related Entities
- [[cftc]]
- [[kalshi]]
- [[polymarket]]
- [[dave-mccormick]]
- [[kirsten-gillibrand]]

## Sources
- Lowenstein Sandler FinTech Five, May 5 2026