Crypto Market Update: House Bill Proposes Ban on Lawmakers Participating in Crypto Prediction Markets
June 5, 2026 | By Meagen Seatter and Giann Liguid | Edited by Charlotte McLeod
As of midday Friday (June 5) UTC, the cryptocurrency market has witnessed notable developments both on Capitol Hill and within key industry players. A new legislative initiative aims to prohibit lawmakers from engaging in cryptocurrency prediction markets, while significant corporate maneuvers and market movements continue to influence investor sentiment.
Lawmakers Target Crypto Prediction Markets in Trading Ban Proposal
In an effort to combat potential conflicts of interest and insider trading on Capitol Hill, House Republicans are pushing forward a bill—HR 7008—that would bar members of Congress, their spouses, and dependents from purchasing publicly traded stocks. Extending the scope of this legislation, Representative Bryan Steil, chair of the House Administration Committee, announced plans to explicitly include crypto prediction markets in the restrictions.
Speaking to Bloomberg Government on June 4, Steil emphasized that platforms such as Polymarket and Kalshi—popular venues for speculating on a wide spectrum of outcomes using cryptocurrency-based contracts—would fall under the bill’s purview. This measure aims to close loopholes that might otherwise allow lawmakers to leverage insider knowledge via decentralized prediction markets.
Under HR 7008, violators would face significant penalties, including a fine of $2,000 or 10 percent of the investment’s value, whichever is greater, alongside the forfeiture of any financial gains from prohibited trades. The bill also requires members to publicly file “intent to sell” notifications at least seven days before executing stock sales, fostering increased transparency of congressional financial dealings. While the legislation successfully passed committee stages earlier this year and sits on the House calendar, it currently does not make explicit provisions for digital asset trading—prompting the proposed amendment.
Market Snapshot: Bitcoin and Altcoins Experience Pullback
As of the latest figures, Bitcoin (BTC) trades at approximately $61,972, representing a 4.9% decline over the previous 24 hours. Ether (ETH) has seen a sharper drop, down 10.2% to $1,663. XRP and Solana also traded lower, shedding 5.8% and 7.3% respectively.
Prominent voices in the cryptocurrency sphere attribute these price movements partly to a temporary capital rotation towards artificial intelligence investments, which now command an estimated $400 billion in focused buildout. Michael Saylor of Strategy, a well-known corporate Bitcoin investor, continues to defend his company’s large Bitcoin holdings amidst these fluctuations.
Hut 8’s Record Bond Sale Fuels AI Data Center Expansion
Amid broader market volatility, Hut 8 (TSX:HUT, NASDAQ:HUT), a Canadian Bitcoin mining firm transitioning into data center operations, successfully completed a massive bond sale totaling $17 billion—nearly four times its initial target of $4.25 billion. These funds will support the construction of a 352-megawatt high-density data center facility in Nueces County, Texas.
Importantly, the entire facility has been leased to semiconductor giant NVIDIA (NASDAQ:NVDA), leveraging a recent 15-year lease agreement valued at approximately $9.8 billion secured with a leading US technology client. This expansion highlights Hut 8’s strategic pivot to capitalize on infrastructure demand driven by artificial intelligence and high-performance computing. Following the financing announcement, Hut 8’s stock surged over 127% year-to-date, reaching $116.20 per share.
Strategy Grapples with Multibillion-Dollar Bitcoin Paper Loss Amid Market Dip
Strategy (NASDAQ:MSTR), a major corporate Bitcoin holder with approximately 843,706 BTC in its treasury, is currently facing an estimated $11.2 billion unrealized loss due to the recent decline in Bitcoin prices. With Bitcoin trading near $62,560—well below Strategy’s average acquisition cost of $75,699 per coin—the company’s cryptocurrency assets now hold a notional value significantly less than their total investment of around $63.8 billion.
Adding to financial pressures, accounting rules mandated by the Financial Accounting Standards Board (FASB) require quarterly mark-to-market adjustments, which have contributed another $14.46 billion in unrealized losses in Q1 alone. Recently, Strategy broke its four-year policy of never selling Bitcoin, liquidating 32 BTC for $2.5 million to fund dividend payments on its perpetual preferred stock. The company’s cash reserves have also fallen from $2.25 billion to $900 million in just five months, constraining its ability to acquire new cryptocurrency holdings while managing annual preferred dividend obligations estimated between $750 million and $800 million.
Looking Ahead
The proposed legislative changes in the US House underscore growing regulatory scrutiny over cryptocurrency markets and their intersection with government ethics. As lawmakers move to clamp down on potential conflicts of interest by banning participation in crypto prediction markets, investors and industry insiders await further developments.
Meanwhile, corporate efforts such as Hut 8’s bond offering and Strategy’s ongoing Bitcoin management illustrate the diverse and evolving enterprise strategies within the blockchain and data infrastructure sectors amid market fluctuations.
Stay connected with Investing News Network for real-time coverage and in-depth analysis of cryptocurrency trends and regulatory updates.
About the Authors
Meagen Seatter is an Investment Market Content Specialist with experience spanning Australia, Southeast Asia, and Canada. She writes extensively on life sciences, cannabis, technology, and psychedelics markets.
Giann Liguid holds a degree in Interdisciplinary Studies and has diverse experience in security, food, business industries, and public administration. He specializes in deciphering market headlines and delivering comprehensive analysis.
Disclosure: The authors hold no direct investment interest in any companies mentioned.