Rep. Don Davis introduces bill prohibiting federal candidates and campaign committees from trading prediction market contracts tied to their own elections, with $10,000 minimum penalties.
Regulation & Gov ·
Rep. Don Davis has introduced legislation that would prohibit federal candidates and their campaign committees from trading prediction market contracts linked to their own elections. The bill extends restrictions to candidates' spouses and dependent children as well, establishing a minimum penalty of $10,000 per violation.
The proposal targets a potential conflict of interest in prediction markets—platforms where participants trade contracts based on outcomes of future events, including elections. By barring candidates and their immediate family members from such trading, the legislation aims to prevent self-dealing and financial incentives that could distort electoral integrity or market pricing.
The scope of enforcement, specific definitions of what constitutes a covered prediction market contract, and implementation mechanisms remain to be determined as the bill progresses through the legislative process.