Section 1 Short title
This Act may be cited as the “Prediction Market Restrictions on Insider Speculation and Knowledge-Trading Act” or the “Prediction Market RISK Act”.
Prediction Market Restrictions on Insider Speculation and Knowledge-Trading Act
A BILL
To reaffirm the Commodity Futures Trading Commission’s authority to enforce prohibited activity on prediction markets.
Sec. 2 Definition
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.
Sec. 3 CFTC authority to enforce prohibited transactions occurring in relation to a prediction market contract
Section 4(c) and section 6(c) of the Commodity Exchange Act (7 U.S.C. 7a–2(c)) apply to illegal trading practices occurring with relation to a prediction market contract.