To prohibit certain campaign-affiliated individuals from trading political event contracts while in possession of material nonpublic campaign information, to require covered prediction market platforms to maintain safeguards against insider trading and market manipulation, and for other purposes.
This bill prohibits campaign workers and consultants from trading in political prediction markets when they have access to confidential campaign information like internal polling, fundraising data, or candidate strategy. The legislation applies to anyone directly compensated by or working for federal candidates, political committees, or campaign-related organizations, as well as their immediate family members. The bill requires prediction market platforms to establish safeguards to detect suspicious trading by campaign-affiliated individuals and to report violations to the Commodity Futures Trading Commission, with traders above certain thresholds required to disclose their campaign affiliations. Violations can result in civil penalties up to $250,000 or three times the profits gained, disgorgement of profits, and trading bans. The Commodity Futures Trading Commission has 180 days after the bill's enactment to write implementing rules, and the bill carves out protections for public political analysis, journalism, academic research, and trading by individuals without access to confidential campaign information.
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