H.R. 7004 prohibits federal officials and employees from trading in prediction market contracts—financial bets on future political or government events—when they possess insider information unavailable to the general public. The law applies to elected federal officials, congressional staff, political appointees, and executive branch employees. Specifically, it bars these "covered individuals" from buying, selling, or trading contracts tied to government policies, government actions, or political outcomes if they have access to material nonpublic information relevant to those trades, either currently or through their official duties. The bill does not specify dedicated funding or enforcement timelines, instead establishing a legal prohibition with civil and criminal penalties for violations. This legislation aims to prevent government insiders from profiting off confidential information while performing their public duties.