World Economy

Democrat Pushes Federal Ban on Candidate Trading in Election Markets

Rep. Don Davis introduced legislation Monday to prohibit federal candidates from trading on prediction market contracts tied to their own races. The "No Betting on Your Own Race Act" would impose penalties of $10,000 or three times the net financial gain from such trades, whichever is larger. The proposal mirrors enforcement actions already undertaken by prediction market platforms concerned about insider trading risks. The bill follows disciplinary action against a Republican congressional candidate in North Carolina who faced suspension and penalties for wagering on her own election. Prediction markets have actively sought to curb candidates from trading on their own contracts due to insider trading concerns. The lawmaker argued candidates should face the same restrictions as athletes betting on their games, calling the measure common-sense policy. He emphasized the need for consistency across federal campaigns.