HouseH.R. 8771119th Congress

Campaign Event Contract Integrity Act

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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8771 Introduced in House (IH)]

<DOC>

119th CONGRESS
  2d Session
                                H. R. 8771

   To prohibit certain campaign-affiliated individuals from trading 
  political event contracts while in possession of material nonpublic 
campaign information, to require covered prediction market platforms to 
 maintain safeguards against insider trading and market manipulation, 
                        and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 12, 2026

  Mr. Torres of New York (for himself and Mr. Moulton) introduced the 
   following bill; which was referred to the Committee on Agriculture

_______________________________________________________________________

                                 A BILL

 
   To prohibit certain campaign-affiliated individuals from trading 
  political event contracts while in possession of material nonpublic 
campaign information, to require covered prediction market platforms to 
 maintain safeguards against insider trading and market manipulation, 
                        and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Campaign Event Contract Integrity 
Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Covered campaign-affiliated individual.--The term 
        ``covered campaign-affiliated individual'' means any individual 
        who, directly or indirectly, receives compensation from, acts 
        on behalf of, or provides services to--
                    (A) a candidate for Federal office;
                    (B) an authorized committee of a candidate for 
                Federal office;
                    (C) a political committee;
                    (D) a political party committee;
                    (E) a leadership PAC; or
                    (F) any entity or organization substantially 
                engaged in campaign-related activity, including any 
                employee, consultant, advisor, pollster, data analyst, 
                strategist, media consultant, fundraiser, vendor, 
                contractor, volunteer with access to confidential 
                information, or any immediate family member acting on 
                behalf of such individual.
            (2) Covered platform.--The term ``covered platform'' means 
        any registered entity, designated contract market, swap 
        execution facility, broker, intermediary, or other platform 
        that facilitates trading in political event contracts.
            (3) Material nonpublic campaign information.--The term 
        ``material nonpublic campaign information'' means confidential 
        information unavailable to the general public that a reasonable 
        person would consider important in deciding whether to 
        purchase, sell, or trade a political event contract, 
        including--
                    (A) internal polling;
                    (B) turnout projections;
                    (C) voter targeting data;
                    (D) fundraising information;
                    (E) campaign advertising strategy;
                    (F) opposition research;
                    (G) internal campaign analytics;
                    (H) unreleased endorsement information;
                    (I) candidate withdrawal or suspension plans; or
                    (J) any other confidential campaign information 
                designated by rule of the Commodity Futures Trading 
                Commission.
            (4) Political event contract.--The term ``political event 
        contract'' means any agreement, transaction, swap, option, 
        contract, derivative, or event contract that allows a person to 
        purchase, sell, trade, or otherwise obtain financial exposure 
        based on the outcome of--
                    (A) a Federal election;
                    (B) a primary election;
                    (C) a caucus;
                    (D) the nomination of a candidate;
                    (E) control of Congress;
                    (F) the approval or rejection of legislation; or
                    (G) any other political or governmental event 
                designated by the Commodity Futures Trading Commission.

SEC. 3. TRADING BY CAMPAIGN-AFFILIATED INDIVIDUALS.

    (a) Conduct During Campaign Affiliation.--No covered campaign-
affiliated individual may, directly or indirectly, purchase, sell, 
trade, or otherwise transact in a political event contract while 
knowingly in possession of material nonpublic campaign information.
    (b) Tipping Prohibition.--No covered campaign-affiliated individual 
may communicate, provide, or disclose material nonpublic campaign 
information to another person when it is reasonably foreseeable that 
such information may be used to trade a political event contract.
    (c) Evasion Prohibition.--No person may knowingly trade political 
event contracts on behalf of, at the direction of, or for the benefit 
of a covered campaign-affiliated individual for the purpose of evading 
this Act.

SEC. 4. PLATFORM SAFEGUARDS AND COMPLIANCE REQUIREMENTS.

    (a) In General.--Each covered platform shall establish and maintain 
reasonable policies, procedures, and controls reasonably designed to--
            (1) detect and prevent trading prohibited under this Act;
            (2) identify suspicious trading activity involving 
        campaign-affiliated individuals;
            (3) monitor concentrated or coordinated trading activity 
        connected to campaigns, political committees, or affiliated 
        entities;
            (4) maintain records sufficient to assist in the detection 
        and investigation of violations of this Act; and
            (5) report suspicious activity to the Commodity Futures 
        Trading Commission, as appropriate.
    (b) Campaign Affiliation Disclosure.--A covered platform shall 
require any trader engaging in political event contract trading above 
thresholds established by the Commodity Futures Trading Commission to 
disclose whether such trader--
            (1) is employed by, compensated by, or affiliated with a 
        Federal campaign, political committee, or political party 
        committee; or
            (2) possesses access to material nonpublic campaign 
        information.
    (c) Rulemaking.--Not later than 180 days after the date of the 
enactment of this Act, the Commodity Futures Trading Commission shall 
promulgate rules implementing this section.

SEC. 5. ENFORCEMENT.

    (a) Authority.--The Commodity Futures Trading Commission may 
investigate potential violations of this Act and bring civil 
enforcement actions in an appropriate United States district court.
    (b) Civil Penalties.--Any person who violates this Act shall be 
subject to--
            (1) a civil penalty not to exceed the greater of--
                    (A) $250,000; or
                    (B) three times the profit gained or loss avoided 
                as a result of the violation;
            (2) disgorgement of profits obtained through prohibited 
        trading activity; and
            (3) temporary or permanent trading bans relating to 
        political event contracts.
    (c) Referral Authority.--The Commodity Futures Trading Commission 
may refer evidence of willful misconduct, fraud, conspiracy, false 
statements, or other criminal violations to the Attorney General.

SEC. 6. SAFE HARBOR.

    Nothing in this Act shall be construed to prohibit--
            (1) lawful political analysis based exclusively on publicly 
        available information;
            (2) journalism, academic research, or public commentary;
            (3) trading activity by persons without access to material 
        nonpublic campaign information; or
            (4) the lawful operation of political event contracts 
        otherwise permitted under Federal law.

SEC. 7. RULE OF CONSTRUCTION.

    Nothing in this Act shall be construed to--
            (1) alter, limit, expand, or otherwise affect the authority 
        of the Commodity Futures Trading Commission under the Commodity 
        Exchange Act;
            (2) modify, supersede, or preempt any existing Federal 
        securities, commodities, campaign finance, fraud, ethics, or 
        anti-corruption laws;
            (3) prohibit or authorize the prohibition of political 
        event contracts otherwise permitted under Federal law; or
            (4) limit the authority of any Federal agency to 
        investigate, enforce, or prosecute conduct otherwise prohibited 
        under Federal law.
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