Section 1 Short title
This Act may be cited as the “Public Integrity in Financial Prediction Markets Act of 2026”.
Public Integrity in Financial Prediction Markets Act of 2026
A BILL
To prohibit a covered individual from engaging in covered transactions involving prediction market contracts, and for other purposes.
Sec. 2 Prohibition on covered transactions involving prediction market contracts
In general— It shall be unlawful for a covered individual to knowingly engage in a covered transaction if the covered individual—
at the time of the covered transaction, possesses material nonpublic information relevant to such covered transaction; or
may reasonably obtain such material nonpublic information in the course of performing official duties, including when such information would not otherwise be available to a member of the public exercising reasonable diligence.
Definitions— In this section:
Covered individual— The term “covered individual” means—
an elected official of the Federal Government;
an employee of the House of Representatives or the Senate;
a political appointee; or
an employee of an Executive agency, as defined in section 105 of title 5, United States Code.
Material nonpublic information— The term “material nonpublic information” means information—
that a reasonable investor would consider important in making an investment decision; and
that is not publicly available.
Prediction market contract— The term “prediction market contract” means any financial instrument, contract, or derivative—
listed on or offered by a platform engaged in interstate commerce; and
tied to the occurrence or non-occurrence of a future event, including market-based event contracts.
Covered transaction— The term “covered transaction” means the purchase, sale, or exchange of any prediction market contract related to a—
government policy;
government action; or
political outcome.