Congressional Prediction Market Ban

Summary#

This bill would add a new subchapter to federal ethics rules that stops Members of Congress from taking part in certain prediction market contracts. It defines a prediction market contract as an agreement that pays out based on whether a specific event or contingency occurs and linked to an excluded commodity under the Commodity Exchange Act. The ban also covers benefits that come through someone living in the Member's household.

The bill requires each Member to certify, within 15 days after the start of each calendar year, that they complied with the ban for the previous year. House Members certify to the Clerk of the House; Senators certify to the Secretary of the Senate. Those certifications must be posted on the Clerk's and Secretary's public websites.

Congressional ethics committees must investigate Members who fail to certify or who are credibly reported to have violated the ban. Members found to have violated the ban face a fine that is the greater of $10,000 or three times the profit made from the violation. Fines are deposited into the Treasury. Ethics committees must also issue procedures and guidance, and may recommend additional sanctions under their chamber rules. The committees must publish procedures and guidance on public websites. The bill gives 90 days after enactment for committees to issue procedures and guidance, and 180 days for Members to begin complying.

What it means for you#

• If you are a Member of Congress: You would be banned from engaging in or benefiting from covered prediction market transactions. You must file an annual certification of compliance. You could be investigated and fined if you violate the ban.
• If you live in the same household as a Member: A household member's participation could count as a benefit to the Member if the transaction results in a payment or other benefit to someone in the household.
• If you are not a Member or a household member of a Member: No publicly available information indicates this bill changes your rights or duties.

Expenses#

No publicly available information on estimated federal costs or savings from this bill is included in the bill text. The bill does require congressional ethics committees to prepare procedures and guidance and to post materials publicly, and it specifies that fines collected go to the Treasury.

Proponents' View#

No publicly available information in the bill text or metadata states the sponsors' or proponents' reasons for introducing the bill.

Opponents' View#

No publicly available information in the bill text or metadata states opponents' reasons or objections to the bill.