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- Source: inbox/queue/2026-04-30-mccormick-gillibrand-prediction-market-act-2026.md - Domain: internet-finance - Claims: 2, Entities: 3 - Enrichments: 3 - Extracted by: pipeline ingest (OpenRouter anthropic/claude-sonnet-4.5) Pentagon-Agent: Rio <PIPELINE>
2.2 KiB
2.2 KiB
Prediction Market Act of 2026
Overview
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.
Key Provisions
- 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"
- Enhanced DCM Standards: Establishes enhanced Designated Contract Market (DCM) certification standards and customer protections
- Insider Trading Prohibitions: Bars members of Congress, president, vice president, and senior executive branch officials from trading on prediction market platforms
- Office of the Retail Advocate: Creates new office within CFTC to represent retail participants
- Advisory Council: Establishes Advisory Council on Consumer Protection composed of regulators, law enforcement, consumer advocates, and market participants
- Fund Segregation: Requires fund segregation and safeguards against illicit finance
Scope
Stated scope addresses "outcomes in politics, sports, climate, and other events." No explicit mention of governance markets, futarchy, or decision markets in public materials.
Legislative Context
- Companion legislation exists: Blumenthal's "Prediction Markets Security and Integrity Act" (more restrictive)
- Senate unanimously passed resolution restricting congressional prediction market trading
- First statutory attempt to define event contracts at federal level
Regulatory Significance
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.
Timeline
- 2026-04-30 — Bill introduced by Senators McCormick and Gillibrand