Public Integrity in Financial Prediction Markets Act of 2026

This bill prohibits certain federal officials and employees from using nonpublic information gained from their official positions to profit by trading in prediction market contracts, which are financial instruments tied to the outcome of events. It adds a new subchapter to existing ethics laws.

Sec. 2, Prohibition on covered transactions involving prediction market contracts: This section defines key terms. A "covered individual" includes the President, Vice President, Members of Congress, congressional employees, political appointees, and employees of executive or independent regulatory agencies. A "covered transaction" is buying, selling, or exchanging any prediction market contract. "Material nonpublic information" is information important to a reasonable investor in such contracts that is not publicly available. A "prediction market contract" is any financial instrument tied to an event's occurrence, including event contracts under the Commodity Exchange Act.

Sec. 13152, Prohibition: No covered individual may use material nonpublic information derived from their official position or duties to make a profit through a covered transaction.

Sec. 13153, Penalties: A violator must pay a fine equal to the greater of $500 or double the profit made from the transaction. Fines go to the Treasury's miscellaneous receipts.

Sec. 13154, Duties of supervising ethics offices: Within 180 days of enactment, each supervising ethics office must impose and collect penalties, establish procedures and forms, issue rules in consultation with the Commodity Futures Trading Commission, and publish all related materials on a website.

Sec. 13155, Reports: Within 30 days of any covered transaction over $250, the covered individual must report to the supervising ethics office the contract's value, purchase price and number, date and time, contract name and position, trading platform, and profit or loss after closure or exit, with an additional report if not yet closed.