S. 4188

119 S4188 IS: Public Integrity in Financial Prediction Markets Act of 2026
 U.S. Senate
 2026-03-25
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 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 II  119th CONGRESS  2d Session  S. 4188  IN THE SENATE OF THE UNITED STATES   March 25, 2026   Ms. Slotkin  (for herself,  Mr. Young ,  Mr. Schiff , and  Mr. Curtis ) introduced the following bill; which was read twice and referred to the  Committee on Homeland Security and Governmental Affairs    A BILL
To prohibit a covered individual from engaging in covered transactions involving prediction market contracts, and for other purposes.
1.
Short title
This Act may be cited as the   Public Integrity in Financial Prediction Markets Act of 2026  .
2.
Prohibition on covered transactions involving prediction market contracts
(a)
In general
 Chapter 131  of title 5, United States Code, is amended by adding at the end the following:
IV
Prohibited covered transactions involving prediction market contracts
13151.
Definitions
In this subchapter:
(1)
Covered individual
The term  covered individual  means—
(A)
the President;
(B)
the Vice President;
(C)
a Member of Congress;
(D)
a House of Representatives or Senate employee;
(E)
a political appointee; or
(F)
an employee of an Executive agency or independent regulatory agency.
(2)
Covered transaction
The term  covered transaction  means the purchase, sale, or exchange of any prediction market contract.
(3)
Executive agency
The term  Executive agency  has the meaning given the term in section 105 of title 5.
(4)
House of Representatives or Senate employee
The term  House of Representatives or Senate employee —
(A)
means an employee of the Federal Government whose pay is disbursed by the Secretary of the Senate or the Chief Administrative Officer of the House of Representatives; and
(B)
does not include an employee described in subparagraph (A) who is serving under a temporary or term appointment.
(5)
Independent regulatory agency
The term  independent regulatory agency  has the meaning given the term in section 3502 of title 44.
(6)
Material nonpublic information
The term  material nonpublic information  means information—
(A)
that a reasonable investor would consider important in making a decision relating to a prediction market contract; and
(B)
that is not publicly available.
(7)
Member of Congress; supervising ethics office
The terms  Member of Congress  and  supervising ethics office  have the meanings given those terms in section 13101.
(8)
Political appointee
The term  political appointee  has the meaning given the term in section 106(f)(5) of title 49.
(9)
Prediction market contract
The term  prediction market contract  means any financial instrument, contract, or derivative—
(A)
listed on or offered by a platform, regardless of whether the platform is domiciled in the United States; and
(B)
tied to the occurrence or non-occurrence of an event, including event contracts, as described in section 5c(c)(5)(C)(i) of the Commodity Exchange Act ( 7 U.S.C. 7a–2(c)(5)(C)(i) ).
13152.
Prohibition
No covered individual may use material nonpublic information derived from the position of the covered individual as President, Vice President, a Member of Congress, a House of Representatives or Senate employee, a political appointee, or an employee of an Executive agency or independent regulatory agency or gained from the performance of the official responsibilities of the covered individual as a means for making a profit through a covered transaction.
13153.
Penalties
(a)
In general
Notwithstanding any other provision of law, including any regulation, a covered individual who violates section 13152 shall be assessed a fine not to exceed the greater of—
(1)
$500; or
(2)
an amount equal to double the profit made by the covered individual through the applicable covered transaction.
(b)
Deposit in Treasury
The fines paid under subsection (a) shall be deposited in the miscellaneous receipts of the Treasury.
13154.
Duties of supervising ethics offices
Not later than 180 days after the date of enactment of the  Public Integrity in Financial Prediction Markets Act of 2026 , each supervising ethics office shall—
(a)
impose and collect penalties in accordance with section 13153;
(b)
establish such procedures and standard forms as the supervising ethics office determines appropriate to implement this subchapter;
(c)
in consultation with the Commodity Futures Trading Commission, issue such rules and guidelines as the supervising ethics office determines appropriate for the implementation and application of this subchapter; and
(d)
publish on a website all procedures, forms, rules, and guidelines described in this section.
13155.
Reports
Not later than 30 days after receiving notification of any covered transaction the value of which is more than $250 and to which the covered individual is a party, the covered individual shall submit to the applicable supervising ethics office a report describing the covered transaction, which shall include—
(1)
the value of the prediction market contract, including the purchase price and number of prediction market contracts purchased;
(2)
the date and time of the covered transaction;
(3)
the name of the prediction market contract and the position taken on the prediction market contract;
(4)
the prediction market contract trading platform used to complete the covered transaction; and
(5)
the profit or loss of the covered transaction after the prediction market contract closes, or the covered individual exits the position, provided that if the prediction market contract is not closed on the date on which the report under this section is submitted, an additional report shall be submitted not later than 30 days after the date on which the prediction market contract closes or the covered individual exits the position.
  .
(b)
Clerical amendment
The table of sections for  chapter 131  of title 5, United States Code, is amended by adding at the end the following:
SUBCHAPTER IV—Prohibited covered transactions involving prediction market contracts
13151. Definitions.
13152. Prohibition.
13153. Penalties.
13154. Duties of supervising ethics offices.
13155. Reports.
  .