Public Integrity in Financial Prediction Markets Act of 2026
- Bill Number
- H.R. 7004
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Government Operations and Politics
- Status
- Introduced
- Latest Action
- 2026-01-09: Referred to the Committee on Oversight and Government Reform, and in addition to the Committee on House Administration, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Last Updated
- 2026-04-29T08:07:08Z
AI-Generated Summary
Purpose
The "Public Integrity in Financial Prediction Markets Act of 2026" (H.R. 7004) aims to prevent conflicts of interest and insider advantages by prohibiting certain government officials and employees from trading in prediction markets—financial tools that bet on future events—when they have access to nonpublic information that could influence those events.
Key Provisions
- Prohibition on Transactions: It is illegal for "covered individuals" to knowingly buy, sell, or exchange prediction market contracts if they possess or could reasonably obtain "material nonpublic information" related to the contract at the time of the trade.
- This applies specifically to contracts tied to government policies, actions, or political outcomes.
- Definitions:
- Covered individual: Includes elected federal officials, employees of the House or Senate, political appointees (people appointed to government roles based on political affiliations), and employees of executive agencies (parts of the federal government like departments and independent agencies).
- Material nonpublic information: Private details that a typical investor would find important for deciding whether to invest, and which are not available to the general public.
- Prediction market contract: Any financial product, such as a bet or derivative (a financial tool based on another asset), offered on platforms involved in interstate commerce (business across state lines), that depends on whether a future event happens or not (e.g., election results or policy changes).
- Covered transaction: The act of purchasing, selling, or swapping a prediction market contract linked to government or political matters.
Significant Changes to Existing Law
- This bill extends insider trading rules—already in place for traditional securities like stocks—to the emerging area of prediction markets, which were not explicitly covered before.
- It introduces a specific ban tailored to government insiders, closing a potential gap where officials could use confidential knowledge for personal gain in event-based betting platforms, without altering broader securities laws.
Potential Impacts
- On Government Agencies and Employees: Executive agencies, Congress, and appointees must implement training or compliance measures to avoid violations, potentially increasing administrative oversight to monitor trading activities.
- On Citizens: Enhances public trust by reducing the risk of government insiders profiting from secret information, though it may limit participation in prediction markets for affected individuals without broadly impacting everyday citizens.
- On International Relations: No direct effects, as the bill focuses on domestic federal officials and U.S.-based platforms.
Main Stakeholders Affected
- Government Officials and Employees: Elected leaders, congressional staff, political appointees, and executive agency workers, who face new restrictions on personal financial activities.
- Prediction Market Platforms and Users: Operators of these platforms (e.g., companies offering event-based contracts) may need to verify user identities or restrict access to prevent violations, indirectly affecting traders who are not government insiders.
- Regulators: Bodies like the Securities and Exchange Commission (SEC) or congressional ethics committees could gain enforcement roles, though the bill does not specify an enforcing agency.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens ethics enforcement by treating prediction market trades like insider trading under securities law, potentially leading to civil or criminal penalties (though specifics like fines or jail time are not detailed in the bill). It relies on "knowingly" engaging, setting a high bar for proof of intent.
- Constitutional: Aligns with the government's authority to regulate official conduct and financial markets under the Commerce Clause (which allows Congress to oversee interstate business), without raising free speech or due process concerns, as it targets professional duties rather than personal expression.
- Political: Promotes transparency and integrity in public service, addressing concerns about corruption in new financial technologies like prediction markets, which could influence elections or policies; introduced by a bipartisan group of Democrats, it signals cross-party interest in ethical reforms.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Torres, Ritchie [D-NY-15]
Cosponsors (45)
Rep. Titus, Dina [D-NV-1], Rep. Latimer, George [D-NY-16], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Sherman, Brad [D-CA-32], Rep. Thanedar, Shri [D-MI-13], Rep. Moulton, Seth [D-MA-6], Rep. McBride, Sarah [D-DE-At Large], Rep. Adams, Alma S. [D-NC-12], Rep. Bynum, Janelle S. [D-OR-5], Rep. Stanton, Greg [D-AZ-4], Rep. Pettersen, Brittany [D-CO-7], Rep. Sewell, Terri A. [D-AL-7], Rep. Foster, Bill [D-IL-11], Rep. Subramanyam, Suhas [D-VA-10], Rep. Pelosi, Nancy [D-CA-11], Rep. Casten, Sean [D-IL-6], Rep. Goldman, Daniel S. [D-NY-10], Rep. Bell, Wesley [D-MO-1], Rep. Carson, André [D-IN-7], Rep. Horsford, Steven [D-NV-4], Rep. Levin, Mike [D-CA-49], Rep. McGarvey, Morgan [D-KY-3], Rep. Deluzio, Christopher R. [D-PA-17], Rep. McDonald Rivet, Kristen [D-MI-8], Rep. Vargas, Juan [D-CA-52], Rep. Soto, Darren [D-FL-9], Rescom. Hernández, Pablo Jose [D-PR-At Large], Rep. Tlaib, Rashida [D-MI-12], Rep. Riley, Josh [D-NY-19], Rep. Vindman, Eugene Simon [D-VA-7], Rep. Meng, Grace [D-NY-6], Rep. McCollum, Betty [D-MN-4], Rep. Pocan, Mark [D-WI-2], Rep. Salinas, Andrea [D-OR-6], Rep. Liccardo, Sam T. [D-CA-16], Rep. Gottheimer, Josh [D-NJ-5], Rep. DeLauro, Rosa L. [D-CT-3], Rep. Veasey, Marc A. [D-TX-33], Rep. Magaziner, Seth [D-RI-2], Rep. Huffman, Jared [D-CA-2], Rep. Tokuda, Jill N. [D-HI-2], Rep. Vasquez, Gabe [D-NM-2], Rep. Pingree, Chellie [D-ME-1], Rep. Pappas, Chris [D-NH-1], Rep. Krishnamoorthi, Raja [D-IL-8]
Recent Actions
- 2026-01-09: Referred to the Committee on Oversight and Government Reform, and in addition to the Committee on House Administration, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2026-01-09: Referred to the Committee on Oversight and Government Reform, and in addition to the Committee on House Administration, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2026-01-09: Introduced in House
- 2026-01-09: Introduced in House
Bill Versions
- Public Integrity in Financial Prediction Markets Act of 2026 — issued 2026-01-09 — PDF (4 pages)