This bill changes the Commodity Exchange Act to ban certain event contracts from being listed, cleared, or traded on registered entities. It prohibits agreements, contracts, transactions, or swaps tied to: political elections or contests; actions by the executive, legislative, or judicial branches of the United States (with an exception for contracts used to hedge or mitigate commercial risk as the Commission may define); sporting events or contests; and military actions by the United States or any foreign country. The bill includes a "sense of Congress" that the Commodity Futures Trading Commission should block availability of tradable contracts that are not used for hedging commercial risk and that State gambling laws are not preempted. The Comptroller General must complete a study within 60 days after enactment on prediction markets (including insider trading and effects on 18–20 year olds), other prediction markets not prohibited by the Act, and ways to address illegal acts in foreign and domestic prediction markets, and must report findings and recommendations to Congress.
If you use registered exchanges or other registered trading entities, contracts tied to elections, government actions, sports, or military actions would not be available for listing, clearing, or trading under this bill. Commercial parties may still be able to use certain contracts for hedging or mitigating commercial risk if the Commission permits them. The bill also directs a short GAO study on prediction markets and related risks.
No publicly available information on costs or budgetary effects. The bill requires a GAO study but does not include cost estimates.
As stated in the bill, supporters intend to prevent a federal regulatory structure that permits gambling-like trading on registered entities, preserve the integrity of prediction markets, address insider trading concerns, and protect young adults. The bill also emphasizes allowing legitimate hedging for commercial risk and preserving State authority over gambling.
No publicly available information on opponents' views in the bill text or provided metadata.