Campaign Event Contract Integrity Act

This bill prohibits certain campaign-affiliated individuals from trading political event contracts while in possession of material nonpublic campaign information, requires covered prediction market platforms to maintain safeguards against insider trading and market manipulation, and establishes enforcement mechanisms. Sec. 2, Definitions: Defines key terms including "covered campaign-affiliated individual" (anyone compensated by or acting for a candidate, political committee, or campaign-related entity), "covered platform" (entities facilitating trading in political event contracts), "material nonpublic campaign information" (confidential information like internal polling or strategy), and "political event contract" (contracts based on election outcomes or political events). Sec. 3, Trading by campaign-affiliated individuals: Prohibits covered campaign-affiliated individuals from trading political event contracts while knowingly possessing material nonpublic campaign information, from tipping such information to others, and from evading these prohibitions by trading through others. Sec. 4, Platform safeguards and compliance requirements: Requires covered platforms to establish policies to detect and prevent prohibited trading, identify suspicious activity, monitor coordinated trading, maintain records, and report suspicious activity to the Commodity Futures Trading Commission (CFTC). Platforms must also require traders above certain thresholds to disclose campaign affiliation or access to material nonpublic information. The CFTC must issue implementing rules within 180 days. Sec. 5, Enforcement: Grants the CFTC authority to investigate violations and bring civil enforcement actions, with penalties up to $250,000 or three times profits gained, disgorgement, and trading bans. The CFTC may refer criminal violations to the Attorney General. Sec. 6, Safe harbor: Clarifies that the bill does not prohibit lawful political analysis based on public information, journalism, trading by persons without access to material nonpublic information, or lawful operation of political event contracts. Sec. 7, Rule of construction: States that the bill does not alter CFTC authority under the Commodity Exchange Act, modify other federal laws, prohibit or authorize prohibition of political event contracts, or limit other federal agency enforcement.