Prediction Market RISK Act

The Prediction Market RISK Act aims to prevent insider trading and conflicts of interest within the growing industry of online prediction markets. These platforms allow users to bet on the outcomes of real-world events, such as elections, policy decisions, or international conflicts. The bill would specifically prohibit members of Congress, the president, vice president, political appointees, and other federal employees from using material nonpublic information to place wagers on these events. By doing so, the legislation seeks to ensure that those with the power to influence government outcomes cannot profit personally from their inside knowledge.

In addition to individual restrictions, the bill proposes to reaffirm the authority of the Commodity Futures Trading Commission (CFTC) to regulate and enforce rules against prohibited activities on these platforms. This would include cracking down on market manipulation and ensuring that prediction markets are not used as a loophole for illegal gambling or national security leaks. If enacted, the bill would introduce civil penalties and require the return of profits for officials who violate these new standards, aiming to maintain public trust in the integrity of government processes.