Bill bars campaign insiders from trading on political prediction markets

What does this do?

HR 8771 prohibits people connected to political campaigns, parties, or PACs from trading contracts on political prediction markets if they hold nonpublic campaign information. The ban extends to tipping off others or using a third party as a workaround. Prediction market platforms would be required to monitor suspicious activity, keep records, and report to the Commodity Futures Trading Commission.

Who does it affect?

The bill covers campaign staffers, pollsters, consultants, fundraisers, and family members acting on an insider's behalf. Researchers, journalists, and anyone trading solely on public information are not affected.

Why does it matter?

Campaign insiders with nonpublic information could hold a structural advantage over ordinary bettors on these platforms. The bill creates disclosure requirements for large traders and directs the CFTC to issue implementing rules within 180 days.

What does it cost, and who pays?

• Fines up to $250,000 per violation
• Or 3x profit, whichever is larger
• Illegal gains must be returned

Where does it stand?