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2.2 KiB
Markdown
30 lines
No EOL
2.2 KiB
Markdown
# Prediction Market Act of 2026
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## Overview
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Bipartisan federal legislation introduced by Senators Dave McCormick (R-PA) and Kirsten Gillibrand (D-NY) on April 30, 2026, to establish a comprehensive federal framework for event contract markets.
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## Key Provisions
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- **Statutory Definition**: Defines "prediction market contract" as "any financial instrument, contract, or derivative listed on or offered by a platform engaged in interstate commerce and tied to the occurrence or non-occurrence of a future event"
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- **Enhanced DCM Standards**: Establishes enhanced Designated Contract Market (DCM) certification standards and customer protections
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- **Insider Trading Prohibitions**: Bars members of Congress, president, vice president, and senior executive branch officials from trading on prediction market platforms
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- **Office of the Retail Advocate**: Creates new office within CFTC to represent retail participants
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- **Advisory Council**: Establishes Advisory Council on Consumer Protection composed of regulators, law enforcement, consumer advocates, and market participants
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- **Fund Segregation**: Requires fund segregation and safeguards against illicit finance
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## Scope
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Stated scope addresses "outcomes in politics, sports, climate, and other events." No explicit mention of governance markets, futarchy, or decision markets in public materials.
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## Legislative Context
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- Companion legislation exists: Blumenthal's "Prediction Markets Security and Integrity Act" (more restrictive)
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- Senate unanimously passed resolution restricting congressional prediction market trading
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- First statutory attempt to define event contracts at federal level
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## Regulatory Significance
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Would create first statutory definition of "event contract," potentially short-circuiting current state-federal jurisdiction battles and establishing clear federal framework for prediction market regulation.
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## Timeline
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- **2026-04-30** — Bill introduced by Senators McCormick and Gillibrand
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## Links
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- Press Release: https://www.mccormick.senate.gov/news/press-releases/senators-mccormick-gillibrand-introduce-legislation-to-strengthen-prediction-markets-and-protect-everyday-investors/
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- Bill Text PDF: https://www.mccormick.senate.gov/wp-content/uploads/2026/04/The-Prediction-Market-Act-of-2026.pdf |