Rep. Don Davis, a North Carolina Democrat, introduced the No Betting on Your Own Race Act, a bill that would bar federal candidates and specified people and campaign bodies connected to them from trading contracts tied to their own elections. Violators would face a civil penalty of $10,000 or three times the net financial gain, whichever is greater, according to Quartz.
The proposal would place a federal restriction on the people involved in the trading, rather than directly penalizing prediction-market exchanges for facilitating a trade. Its practical effect would be to give candidates and their associated parties a statutory rule to follow, backed by a defined minimum penalty.
Who the proposed ban covers
The bill would apply to federal candidates, their spouses, dependent children and authorized campaign committees, Davis’s office said. Those covered could not buy, sell, acquire, dispose of or hold event contracts related to the candidate’s election.
The legislation would also require candidates to be notified of the prohibition during the filing period. That provision would put the restriction in front of candidates as they file for office, rather than leaving them to learn about it only after a trade has drawn scrutiny.
Kalshi case brought the issue closer to home
Davis introduced the measure after a controversy involving Laurie Buckhout, his Republican opponent in North Carolina’s 1st Congressional District. Kalshi concluded that Buckhout had traded contracts tied to her race. She resolved the dispute with the platform in August, paying a penalty of just under $2,600 and receiving a three-year suspension, according to CNBC.
Buckhout said at the time that she had bet on herself, described the trade as a mistake and said she had tried to put things right once she learned there was an issue. Davis criticized the trades in a post on X, calling them a breach of public trust, CNBC reported. The proposed bill would move the issue beyond a platform’s own enforcement process by establishing a federal civil penalty for covered conduct.
The proposal would also address a gap in existing congressional rules. A Senate resolution passed in April barred senators and their staff from prediction-market trades, but did not cover non-incumbent candidates seeking Senate seats, according to CNBC. No equivalent measure had cleared the House, although several resolutions seeking a similar restriction had been introduced.
Davis’s proposal is part of a broader debate over restrictions on political trading. Rep. Bryan Steil has separately proposed limits on lawmakers’ participation in prediction markets, including contracts tied to elections and public-policy outcomes. The proposal to restrict congressional prediction-market trading focuses on lawmakers, while Davis’s bill specifically targets federal candidates and parties associated with their campaigns.
Little chance of taking effect this cycle
Davis introduced the bill during a pro forma House session. Congress was not scheduled to reconvene until after the midterm elections, leaving the proposal little chance of taking effect during the current electoral cycle, Quartz reported.
For prediction-market operators, the bill would not itself impose a penalty simply for hosting a covered contract, based on the details reported by Quartz. But if enacted, it would make candidate participation in contracts tied to their own elections a federal compliance issue, rather than one handled only under platform rules.
The post Davis Proposal Targets Candidates’ Own-Race Prediction Bets appeared first on ReadWrite.
This articles is written by : Nermeen Nabil Khear Abdelmalak
All rights reserved to : USAGOLDMIES . www.usagoldmines.com
You can Enjoy surfing our website categories and read more content in many fields you may like .
Why USAGoldMines ?
USAGoldMines is a comprehensive website offering the latest in financial, crypto, and technical news. With specialized sections for each category, it provides readers with up-to-date market insights, investment trends, and technological advancements, making it a valuable resource for investors and enthusiasts in the fast-paced financial world.