Bill Summary
The "Event Contract Enforcement Act" aims to amend the Commodity Exchange Act by prohibiting the trading of event contracts that are based on specific controversial or harmful themes. These themes include terrorism, assassination, war, illegal activities, election outcomes, and government actions that are deemed contrary to public interest. The legislation also allows individual states to opt out of the prohibition on gaming contracts if they choose to do so.
Key provisions of the bill include:
1. **Prohibition on Event Contracts**: It makes it unlawful to list or trade contracts related to specified sensitive topics, ensuring that such activities do not take place on registered trading platforms.
2. **State Exemptions**: States can create their own regulations that may exempt certain gaming activities from this prohibition, recognizing the varying legal landscapes across different jurisdictions.
3. **Definition of Gaming**: The bill explicitly defines "gaming" to encompass any aspect of live, simulated, or virtual challenges or games of chance, clarifying what is included under the prohibition.
The amendments will take effect 180 days after the bill is enacted, reflecting a commitment to regulate the integrity of markets while allowing states some flexibility in managing gaming activities.
Possible Impacts
The "Event Contract Enforcement Act" outlined in the provided legislation could affect people in several ways. Here are three examples:
1. **Impact on Speculation and Investment Opportunities**: The prohibition on event contracts related to politically sensitive or high-stakes scenarios such as elections, terrorism, or war could limit the investment opportunities for individuals and companies that engage in speculative trading. Investors who previously relied on event contracts to hedge risks or profit from market movements based on these events may find their options restricted, potentially leading to fewer avenues for financial growth.
2. **State-Level Exemptions and Regulatory Disparities**: The provision allowing states to exempt themselves from the prohibition on gaming contracts may lead to a patchwork of regulations across the country. This could create confusion for individuals and businesses involved in event contracts, as they may need to navigate different legal landscapes depending on where they operate. For example, a gaming company in a state that opts for an exemption might thrive, while similar businesses in other states could face significant restrictions, leading to economic disparities.
3. **Societal and Ethical Considerations**: The legislation reflects a societal stance against commodifying events that are deemed contrary to the public interest, such as terrorism or assassination. This could foster a cultural shift towards viewing such events with greater sensitivity. Individuals might feel more secure knowing that their government is taking a stance against profiting from tragedies or crises, potentially leading to a more ethical investment landscape. However, it could also raise concerns about freedom of expression and the complexity of determining what constitutes the "public interest."
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7840 Introduced in House (IH)]
<DOC>
119th CONGRESS
2d Session
H. R. 7840
To amend the Commodity Exchange Act to prohibit event contracts based
on terrorism, assassination, war, gaming, illegal activity, election
outcomes, government activities, or other activities determined by the
Commodity Futures Trading Commission to be contrary to the public
interest, and to allow States to exempt themselves from the prohibition
on gaming contracts.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 5, 2026
Mr. Moore of Utah (for himself and Mr. Carbajal) introduced the
following bill; which was referred to the Committee on Agriculture
_______________________________________________________________________
A BILL
To amend the Commodity Exchange Act to prohibit event contracts based
on terrorism, assassination, war, gaming, illegal activity, election
outcomes, government activities, or other activities determined by the
Commodity Futures Trading Commission to be contrary to the public
interest, and to allow States to exempt themselves from the prohibition
on gaming contracts.
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 ``Event Contract Enforcement Act''.
SEC. 2. PROHIBITION ON EVENT CONTRACTS CONTRARY TO THE PUBLIC INTEREST.
(a) In General.--Section 5c(c)(5)(C) of the Commodity Exchange Act
(7 U.S.C. 7a-2(c)(5)(C)) is amended--
(1) by striking clauses (i) and (ii) and inserting the
following:
``(i) Event contracts.--Subject to clause
(ii), it shall be unlawful to list or make
available for trading on or through a
registered entity an agreement, contract,
transaction, or swap in an excluded commodity
that is based on an occurrence, the extent of
an occurrence, or a contingency (other than a
change in the price, rate, value, or level of a
commodity described in section 1a(19)(i)) in
relation to--
``(I) activity that is unlawful
under Federal or State law;
``(II) terrorism;
``(III) assassination;
``(IV) war;
``(V) gaming;
``(VI) the result of any vote in an
election (as defined in section 301 of
the Federal Election Campaign Act of
1971) held under Federal, State, or
local law, including a ballot
initiative or referendum;
``(VII) conduct by or in any level
or branch of the Federal Government or
of any State or local government,
including by or in any instrumentality
or by any personnel of any level or
branch of any such government; or
``(VIII) other similar activity
determined by the Commission, by rule
or regulation, to be contrary to the
public interest.
``(ii) Exemption.--Clause (i)(V) shall not
apply with respect to conduct in a State if the
law of the State expressly exempts conduct in
the State from the application of such
clause.''; and
(2) by adding at the end the following:
``(v) Gaming defined.--In clause (i), the
term `gaming' means any aspect of a live,
simulated, or virtual physical or mental
challenge or game of chance.''.
(b) Effective Date.--The amendments made by subsection (a) shall
take effect on the date that is 180 days after the date of the
enactment of this Act.
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