Don Davis Bill Would Fine Candidates $10,000 for Trading on…

AI summary of the source article

U.S. Rep. Don Davis introduced the No Betting on Your Own Race Act to ban federal candidates, their spouses, dependent children, and authorized campaign committees from trading prediction-market contracts tied to their own elections. The bill would impose civil fines of $10,000 per violation or three times the net financial gain, whichever is greater. It also mandates that the Federal Election Commission maintain a machine-readable candidate list and gives platforms like Kalshi legal protections for restricting accounts, voiding positions, and reporting violations to regulators such as the CFTC and the FEC.

Why it matters

The bill would formalize compliance requirements for event-contract platforms, obligating them to surveillance political-market participants while granting legal safe harbors for unwinding improper positions.

Key facts

• The No Betting on Your Own Race Act imposes penalties of $10,000 or three times the net financial gain for candidates trading on their own races.
• Covered prediction-market platforms receive legal protection for closing accounts, voiding positions, and reporting suspected violations to the CFTC, FEC, or DOJ.
• The Federal Election Commission would be required to maintain a free, machine-readable list of federal candidates updated at least weekly.