House Democrat targets candidate prediction market trades after opponent’s Kalshi penalty
A new bill bans federal candidates from trading prediction market contracts related to their own elections and would result in a fine if violated.
TL;DR
- Rep. Don Davis has introduced a bill called the “No Betting on Your Own Race Act” to ban federal candidates from trading on prediction market contracts about their own elections.
- The bill aims to codify rules already enforced by prediction market platforms to prevent insider trading.
- Violators would face a fine of $10,000 or three times their net financial gain, whichever is greater.
- The proposal was introduced following controversy involving Davis's opponent, Laurie Buckhout, who settled with platform Kalshi for trading on her candidacy contracts.
- The bill has little chance of passing before the current midterm elections as Congress is not meeting.
- The Senate previously approved a resolution banning senators and staff from trading on prediction markets, but it did not extend to non-incumbent candidates.