Public Integrity in Financial Prediction Markets Act of 2026
Officially: “Public Integrity in Financial Prediction Markets Act of 2026” Read the full text
What it does
Read it in plain language
1Short title
This section would let the Act be cited as the Public Integrity in Financial Prediction Markets Act of 2026.
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1. Short title This Act may be cited as the Public Integrity in Financial Prediction Markets Act of 2026 .
2Prohibition on covered transactions involving prediction market contracts
This section would make it unlawful for a covered individual to knowingly buy, sell, or exchange a prediction market contract tied to a government policy, government action, or political outcome (a covered transaction) if, at the time of the transaction, the individual possesses material nonpublic information relevant to that transaction, or if the individual may reasonably obtain such information in the course of performing official duties, including where that information would not otherwise be available to a member of the public who exercises reasonable diligence. A covered individual means an elected official of the Federal Government, an employee of the House of Representatives or the Senate, a political appointee, or an employee of an Executive agency as defined in section 105 of title 5, United States Code. Material nonpublic information means information that a reasonable investor would consider important in making an investment decision and that is not publicly available (both conditions must be met). A prediction market contract means any financial instrument, contract, or derivative that is listed on or offered by a platform engaged in interstate commerce and that is tied to whether a future event will or will not occur, including market-based event contracts.
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2. Prohibition on covered transactions involving prediction market contracts (a) In general It shall be unlawful for a covered individual to knowingly engage in a covered transaction if the covered individual— (1) at the time of the covered transaction, possesses material nonpublic information relevant to such covered transaction; or (2) may reasonably obtain such material nonpublic information in the course of performing official duties, including when such information would not otherwise be available to a member of the public exercising reasonable diligence. (b) Definitions In this section: (1) Covered individual The term covered individual means— (A) an elected official of the Federal Government; (B) an employee of the House of Representatives or the Senate; (C) a political appointee; or (D) an employee of an Executive agency, as defined in section 105 of title 5, United States Code. (2) Material nonpublic information The term material nonpublic information means information— (A) that a reasonable investor would consider important in making an investment decision; and (B) that is not publicly available. (3) Prediction market contract The term prediction market contract means any financial instrument, contract, or derivative— (A) listed on or offered by a platform engaged in interstate commerce; and (B) tied to the occurrence or non-occurrence of a future event, including market-based event contracts. (4) Covered transaction The term covered transaction means the purchase, sale, or exchange of any prediction market contract related to a— (A) government policy; (B) government action; or (C) political outcome.
Where it is
In the House.