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This bill prohibits certain federal government officials and employees from trading in prediction market contracts when they have or could reasonably obtain material nonpublic information about the contract's subject. It defines covered individuals, material nonpublic information, prediction market contracts, and covered transactions.
Sec. 2, Prohibition on covered transactions involving prediction market contracts: It is unlawful for a covered individual to knowingly engage in a covered transaction if they possess material nonpublic information relevant to it at the time, or may reasonably obtain such information in the course of performing official duties when it would not otherwise be available to the public. Covered individuals include elected federal officials, House or Senate employees, political appointees, and Executive agency employees. Material nonpublic information is information a reasonable investor would consider important for an investment decision that is not publicly available. A prediction market contract is any financial instrument, contract, or derivative listed on or offered by a platform engaged in interstate commerce and tied to a future event's occurrence or non-occurrence, including market-based event contracts. A covered transaction is the purchase, sale, or exchange of any prediction market contract related to government policy, government action, or political outcome.
Summary of the bill text as introduced in House (Jan 9, 2026), generated by SecBot from the official bill text; the Library of Congress summary is not yet published.
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Official record from Congress.gov, the House Clerk and the Senate; lobbying from Lobbying Disclosure Act filings. Updated Oct 27, 2026.