S. 4226 — STOP Corrupt Bets Act of 2026

This section prohibits a registered entity (i.e., designated contract market, swap execution facility, or derivatives clearing organization) from listing or making available for clearing or trading any agreement, contract, transaction, or swap involving (1) any political election or contest; (2) subject to an exception for hedging or mitigating commercial risk as determined by the Commodity Futures Trading Commission, any action taken by the U.S. executive, legislative, or judicial branch; (3) any sporting event or contest; or (4) any military action taken by the United States or a foreign country.

This section expresses the sense of Congress that (1) notwithstanding the amendment made by section 2, the intent of the Commodity Exchange Act (7 U.S.C. 1 et seq.) is to prohibit the conduct prohibited by that amendment; (2) to prevent 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 of any agreement, contract, transaction, or swap that is not used for hedging or mitigating commercial risk; and (3) nothing in this Act or its amendments preempts state law that regulates or prohibits gambling or gaming.

This section directs the Comptroller General of the United States to conduct a study, not later than 60 days after enactment, on (1) prediction markets, including insider trading therein and impacts on individuals aged 18 to 20 of trading in such markets; (2) additional types of prediction markets not prohibited by the Commodity Exchange Act (as amended by section 2) that could create a federal regulatory structure permitting gambling, including by examining non-hedging agreements, contracts, transactions, or swaps; and (3) means for Congress to address illegal acts in foreign prediction markets and in domestic prediction markets by companies with U.S. and foreign presence; and to submit to Congress and publicly release a report on the results, including recommendations to preserve prediction market integrity.