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Bill would fine candidates $10,000 for trading on their own elections
The No Betting on Your Own Race Act would also cover spouses, dependents and campaign committees, and could require reporting prediction-market activity to regulators.
A bill introduced in the House would bar federal election candidates, their spouses, and their campaign committees from trading prediction market contracts tied to their own races, according to Decrypt.
The No Betting on Your Own Race Act, from Representative Don Davis (D-NC), would amend federal election law to treat the trades as civil offenses, with penalties of $10,000 per violation or three times the net financial gain, whichever is greater.
The measure defines a broad set of covered contracts, including bets on whether someone wins and contracts that resolve on whether a person remains a candidate, along with contracts based on vote share, margin, or placement.
It also counts indirect exposure, such as inducing someone else to trade or holding a beneficial interest, and would give prediction markets a pathway to close accounts and report candidates to regulators, Decrypt reported.