US Senators Dave McCormick and Kirsten Gillibrand have introduced the bipartisan Prediction Market Act of 2026, aiming to establish a comprehensive regulatory framework for prediction markets and event contracts. The proposed legislation seeks to modernize oversight by clearly defining key terms and requiring additional scrutiny for certain contracts, particularly those involving high-stakes activities. The bill mandates enhanced certification standards for exchanges like Polymarket and Kalshi, focusing on improved customer protections through advertising and Know-Your-Customer (KYC) requirements. It also introduces conflict-of-interest rules for public officials and proposes the creation of a Commodity Futures Trading Commission (CFTC) Office of the Retail Advocate and an Advisory Council on Consumer Protection. Additionally, an Innovation Advisory Committee would be formed to address policy questions at the intersection of technology and finance, ensuring regulatory oversight evolves with market practices.