U.S. Lawmaker Introduces Bill to Bar Candidates From Trading Election-Linked Prediction Contracts
AI Market Summary
A new U.S. bill would bar federal candidates from trading prediction-market contracts tied to their own elections, with penalties pegged to a minimum fine or multiples of profit. While narrow in scope, it reinforces compliance and conflict-of-interest scrutiny around election-related contracts, potentially tightening participation rules and liquidity at the margin for political prediction venues.
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Gold Finance reported that on October 6, Democratic U.S. Rep. Don Davis introduced the "No Betting on Your Own Race Act," legislation that would prohibit federal candidates from trading prediction market contracts tied to the outcome of their own elections.
The proposal sets penalties at the greater of at least $10,000 or three times the net profit from the transaction in question.
The move follows a recent case in North Carolina's 1st Congressional District involving Davis's Republican opponent, Laurie Buckhout. Buckhout was fined nearly $2,600 and had her Kalshi trading privileges suspended for three years after trading contracts linked to her own candidacy.
