[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4188 Introduced in Senate (IS)]

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119th CONGRESS
  2d Session
                                S. 4188

To prohibit a covered individual from engaging in covered transactions 
     involving prediction market contracts, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 25, 2026

   Ms. Slotkin (for herself, Mr. Young, Mr. Schiff, and Mr. Curtis) 
introduced the following bill; which was read twice and referred to the 
        Committee on Homeland Security and Governmental Affairs

_______________________________________________________________________

                                 A BILL


 
To prohibit a covered individual from engaging in covered transactions 
     involving prediction market 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 ``Public Integrity in Financial 
Prediction Markets Act of 2026''.

SEC. 2. PROHIBITION ON COVERED TRANSACTIONS INVOLVING PREDICTION MARKET 
              CONTRACTS.

    (a) In General.--Chapter 131 of title 5, United States Code, is 
amended by adding at the end the following:

 ``SUBCHAPTER IV--PROHIBITED COVERED TRANSACTIONS INVOLVING PREDICTION 
                            MARKET CONTRACTS

``Sec. 13151. Definitions
    ``In this subchapter:
            ``(1) Covered individual.--The term `covered individual' 
        means--
                    ``(A) the President;
                    ``(B) the Vice President;
                    ``(C) a Member of Congress;
                    ``(D) a House of Representatives or Senate 
                employee;
                    ``(E) a political appointee; or
                    ``(F) an employee of an Executive agency or 
                independent regulatory agency.
            ``(2) Covered transaction.--The term `covered transaction' 
        means the purchase, sale, or exchange of any prediction market 
        contract.
            ``(3) Executive agency.--The term `Executive agency' has 
        the meaning given the term in section 105 of title 5.
            ``(4) House of representatives or senate employee.--The 
        term `House of Representatives or Senate employee'--
                    ``(A) means an employee of the Federal Government 
                whose pay is disbursed by the Secretary of the Senate 
                or the Chief Administrative Officer of the House of 
                Representatives; and
                    ``(B) does not include an employee described in 
                subparagraph (A) who is serving under a temporary or 
                term appointment.
            ``(5) Independent regulatory agency.--The term `independent 
        regulatory agency' has the meaning given the term in section 
        3502 of title 44.
            ``(6) Material nonpublic information.--The term `material 
        nonpublic information' means information--
                    ``(A) that a reasonable investor would consider 
                important in making a decision relating to a prediction 
                market contract; and
                    ``(B) that is not publicly available.
            ``(7) Member of congress; supervising ethics office.--The 
        terms `Member of Congress' and `supervising ethics office' have 
        the meanings given those terms in section 13101.
            ``(8) Political appointee.--The term `political appointee' 
        has the meaning given the term in section 106(f)(5) of title 
        49.
            ``(9) Prediction market contract.--The term `prediction 
        market contract' means any financial instrument, contract, or 
        derivative--
                    ``(A) listed on or offered by a platform, 
                regardless of whether the platform is domiciled in the 
                United States; and
                    ``(B) tied to the occurrence or non-occurrence of 
                an event, including event contracts, as described in 
                section 5c(c)(5)(C)(i) of the Commodity Exchange Act (7 
                U.S.C. 7a-2(c)(5)(C)(i)).
``Sec. 13152. Prohibition
    ``No covered individual may use material nonpublic information 
derived from the position of the covered individual as President, Vice 
President, a Member of Congress, a House of Representatives or Senate 
employee, a political appointee, or an employee of an Executive agency 
or independent regulatory agency or gained from the performance of the 
official responsibilities of the covered individual as a means for 
making a profit through a covered transaction.
``Sec. 13153. Penalties
    ``(a) In General.--Notwithstanding any other provision of law, 
including any regulation, a covered individual who violates section 
13152 shall be assessed a fine not to exceed the greater of--
            ``(1) $500; or
            ``(2) an amount equal to double the profit made by the 
        covered individual through the applicable covered transaction.
    ``(b) Deposit in Treasury.--The fines paid under subsection (a) 
shall be deposited in the miscellaneous receipts of the Treasury.
``Sec. 13154. Duties of supervising ethics offices
    ``Not later than 180 days after the date of enactment of the Public 
Integrity in Financial Prediction Markets Act of 2026, each supervising 
ethics office shall--
    ``(a) impose and collect penalties in accordance with section 
13153;
    ``(b) establish such procedures and standard forms as the 
supervising ethics office determines appropriate to implement this 
subchapter;
    ``(c) in consultation with the Commodity Futures Trading 
Commission, issue such rules and guidelines as the supervising ethics 
office determines appropriate for the implementation and application of 
this subchapter; and
    ``(d) publish on a website all procedures, forms, rules, and 
guidelines described in this section.
``Sec. 13155. Reports
    ``Not later than 30 days after receiving notification of any 
covered transaction the value of which is more than $250 and to which 
the covered individual is a party, the covered individual shall submit 
to the applicable supervising ethics office a report describing the 
covered transaction, which shall include--
            ``(1) the value of the prediction market contract, 
        including the purchase price and number of prediction market 
        contracts purchased;
            ``(2) the date and time of the covered transaction;
            ``(3) the name of the prediction market contract and the 
        position taken on the prediction market contract;
            ``(4) the prediction market contract trading platform used 
        to complete the covered transaction; and
            ``(5) the profit or loss of the covered transaction after 
        the prediction market contract closes, or the covered 
        individual exits the position, provided that if the prediction 
        market contract is not closed on the date on which the report 
        under this section is submitted, an additional report shall be 
        submitted not later than 30 days after the date on which the 
        prediction market contract closes or the covered individual 
        exits the position.''.
    (b) Clerical Amendment.--The table of sections for chapter 131 of 
title 5, United States Code, is amended by adding at the end the 
following:

 ``subchapter iv--prohibited covered transactions involving prediction 
                            market contracts

``13151. Definitions.
``13152. Prohibition.
``13153. Penalties.
``13154. Duties of supervising ethics offices.
``13155. Reports.''.
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