Rep. Don Davis Bill Would Fine Candidates at Least $10,000 for Trading on Their Own Races

AI summary of the source article

North Carolina Representative Don Davis introduced the No Betting on Your Own Race Act, targeting federal candidates who trade or hold prediction market contracts tied to their own elections. The proposed legislation imposes fines equal to the greater of $10,000 or three times the net gain. The ban extends to candidates, spouses, dependent children, and authorized campaign committees. Prediction platforms and brokers would face no penalties and would receive liability protection for good-faith actions, including closing accounts or reporting violations to the CFTC, FEC, or Attorney General. The FEC would also be required to maintain a weekly updated list of candidates.

Why it matters

The bill establishes formal regulatory consequences for insider trading on political prediction markets while granting safe-harbor protections to trading platforms and brokers.

Key facts

• Violations carry a penalty of at least $10,000 or three times the net financial gain.
• Trading platforms and brokers are shielded from liability for good-faith actions such as closing accounts or reporting suspected violations.
• The FEC would be mandated to maintain a free, machine-readable list of federal candidates updated weekly.