[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4017 Introduced in Senate (IS)]

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119th CONGRESS
  2d Session
                                S. 4017

To amend the Commodity Exchange Act to ban certain Government officials 
         from trading event contracts, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 5, 2026

 Mr. Merkley (for himself, Ms. Klobuchar, Mr. Van Hollen, Mr. Schiff, 
  and Mrs. Gillibrand) introduced the following bill; which was read 
  twice and referred to the Committee on Agriculture, Nutrition, and 
                                Forestry

_______________________________________________________________________

                                 A BILL


 
To amend the Commodity Exchange Act to ban certain Government officials 
         from trading event contracts, 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 ``End Prediction Market Corruption 
Act''.

SEC. 2. BAN ON TRADING EVENT CONTRACTS BY CERTAIN GOVERNMENT OFFICIALS.

    Section 5c of the Commodity Exchange Act (7 U.S.C. 7a-2) is amended 
by inserting after subsection (c) the following:
    ``(d) Ban on Trading Event Contracts by Certain Government 
Officials.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Covered individual.--The term `covered 
                individual' means--
                            ``(i) the President;
                            ``(ii) the Vice President; and
                            ``(iii) a Member of Congress.
                    ``(B) Event contract.--The term `event contract' 
                means an agreement, contract, transaction, or swap in 
                an excluded commodity that is based on an occurrence, 
                extent of an occurrence of, or contingency.
                    ``(C) Material nonpublic information.--The term 
                `material nonpublic information' means information--
                            ``(i) that a reasonable investor would 
                        consider important in making a decision 
                        regarding purchasing, selling, or otherwise 
                        exchanging an agreement or contract in a 
                        commodity or a commodity for future delivery; 
                        and
                            ``(ii) that is not publicly available.
                    ``(D) Member of congress.--The term `Member of 
                Congress' has the meaning given the term in section 
                13101 of title 5, United States Code.
                    ``(E) Senior executive branch official.--The term 
                `senior executive branch official' means any officer or 
                employee described in any of paragraphs (3) through (8) 
                of section 13103(f) of title 5, United States Code.
            ``(2) Ban on trading event contracts.--
                    ``(A) Covered individuals.--No covered individual 
                may purchase, sell, or otherwise exchange an event 
                contract.
                    ``(B) Senior executive branch officials.--No senior 
                executive branch official may purchase, sell, or 
                otherwise exchange an event contract the subject of 
                which is a matter in which the senior executive branch 
                official participates personally and substantially as a 
                Government officer or employee, through decision, 
                approval, disapproval, recommendation, the rendering of 
                advice, investigation, or otherwise, in a judicial or 
                other proceeding, application, request for a ruling or 
                other determination, contract, claim, controversy, 
                charge, accusation, arrest, or other particular matter.
            ``(3) Civil actions.--
                    ``(A) In general.--The Attorney General may bring a 
                civil action in the appropriate United States district 
                court against any individual who engages in conduct in 
                violation of paragraph (2).
                    ``(B) Civil penalty.--In a civil action under 
                subparagraph (A), if it is demonstrated by a 
                preponderance of the evidence that the individual has 
                violated paragraph (2), the individual shall be subject 
                to a civil penalty of not more than the greater of--
                            ``(i) $10,000 for each violation; and
                            ``(ii) the amount of profit made through 
                        the purchase, sale, or exchange of the event 
                        contract in violation of paragraph (2).
                    ``(C) No preclusion of alternative remedies.--The 
                imposition of a civil penalty under this paragraph does 
                not preclude any other criminal or civil statutory, 
                common law, or administrative remedy that is available 
                by law to the United States or any other person.
            ``(4) Foreign boards of trade.--
                    ``(A) Definition of foreign board of trade.--In 
                this paragraph, the term `foreign board of trade' means 
                a board of trade that--
                            ``(i) is organized under the laws of a non-
                        United States jurisdiction or has its principal 
                        place of business outside the United States; 
                        and
                            ``(ii) avails itself of any means or 
                        instrumentality of interstate commerce in the 
                        conduct of its business as a board of trade.
                    ``(B) Quarterly reports.--Each foreign board of 
                trade shall submit to the Commission quarterly reports 
                describing each purchase, sale, or other exchange on 
                the foreign board of trade in violation of paragraph 
                (2).
                    ``(C) Enforcement.--A foreign board of trade that 
                fails to submit a report required by subparagraph (B) 
                shall be subject to revocation of the registration of 
                the foreign board of trade by the Commission.
            ``(5) Insider trading.--The Commission shall issue a rule 
        to restrict the inappropriate use of material nonpublic 
        information, in breach of an express or implied duty not to use 
        or disclose such material nonpublic information, as a means of 
        making a profit through the purchase, sale, or other exchange 
        of an event contract, including by requiring designated 
        contract markets to prohibit the purchase, sale, or other 
        exchange of an event contract by such individuals as the 
        Commission determines to be appropriate in the public 
        interest.''.

SEC. 3. FINANCIAL DISCLOSURE REPORTS.

    (a) Annual and Termination Reports.--Section 13104(a) of title 5, 
United States Code, is amended by adding at the end the following:
            ``(9) Disclosure relating to event contracts.--
                    ``(A) Definitions.--In this paragraph:
                            ``(i) Covered reporting individual.--The 
                        term `covered reporting individual' means an 
                        individual described in paragraphs (1) through 
                        (10) of section 13103(f).
                            ``(ii) Dependent child.--The term 
                        `dependent child' has the meaning given the 
                        term in section 13101.
                            ``(iii) Event contract.--The term `event 
                        contract' has the meaning given the term in 
                        subsection (d)(1) of section 5c of the 
                        Commodity Exchange Act (7 U.S.C. 7a-2).
                    ``(B) Requirement.--Each report filed pursuant to 
                subsection (d) or (e) of section 13103 by a covered 
                reporting individual shall include--
                            ``(i) a statement of whether, during the 
                        period covered by the report, the covered 
                        reporting individual, or the spouse or 
                        dependent child of the covered reporting 
                        individual, purchased, sold, or otherwise 
                        exchanged an event contract; and
                            ``(ii) with respect to any event contract 
                        described in clause (i), a description of the 
                        event contract and the value of the event 
                        contract.''.
    (b) Periodic Event Contract Transaction Reports.--Section 13105 of 
title 5, United States Code, is amended by adding at the end the 
following:
    ``(m) Periodic Event Contract Transaction Reports.--
            ``(1) Definitions.--For purposes of this subsection, the 
        terms `covered reporting individual' and `event contract' have 
        the meanings given those terms in section 13104(a)(9)(A).
            ``(2) Requirement.--Not later than 30 days after receiving 
        notification of any event contract transaction required to be 
        reported under section 13104(a)(9), but in no case later than 
        45 days after such event contract transaction, a covered 
        reporting individual shall file a report of the transaction 
        that includes a description of the event contract that is the 
        subject of the transaction and the value of the event 
        contract.''.
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