US Representative proposes banning candidates from trading prediction market contracts related to their own elections.

BlockBeats news, October 6 — According to CNBC, U.S. Democratic Representative Don Davis of North Carolina introduced the "Ban on Betting on Your Own Election Act" on Monday, which would prohibit candidates for federal office from trading contracts related to their own elections on prediction markets. Violators would be fined $10,000 or three times the net trading profit, whichever is greater.

The proposal stems from the earlier punishment of Davis's Republican campaign opponent, Laurie Buckhout, by Kalshi. Buckhout, who traded contracts related to her own candidacy, reached a settlement with the platform in August, paid a fine of slightly less than $2,600, and was suspended from using Kalshi for three years. She said at the time: "I bet on myself, and that's true. It was a stupid mistake."

Prediction market platforms had previously restricted candidates from trading contracts on their own elections on their own to prevent insider trading. Davis wants to formally write the relevant restrictions into law. However, both the House and Senate plan to resume sessions only after the midterm elections, making it almost impossible for the proposal to be implemented during this election cycle. In April, the Senate passed a resolution prohibiting senators and staff from participating in prediction market trading, but it did not cover candidates who are not incumbent senators.