A new bill introduced by North Carolina Representative Don Davis would prohibit federal candidates, their campaigns, spouses and children from trading contracts tied to their own elections. The proposal, titled the No Betting on Your Own Race Act, is aimed at stopping what Davis described as market interference, insider trading and lawmakers profiting from election-related markets. It would impose a civil penalty of $10,000 per violation or three times any potential financial gain.
The measure does not name prediction market platforms such as Kalshi or Polymarket, but it refers to “political event contracts,” making clear that election-related contracts are the target. The report also points to a prior enforcement case involving Republican House candidate Laurie Buckhout, who was suspended by Kalshi for three years and fined $2,590 in August for trading contracts tied to her own race.
Still, the bill is not expected to move before the 2026 US midterm elections. Congress is in recess until after the election, even though the House has continued to hold some pro forma sessions. Election event contracts remain available on Kalshi and Polymarket, where current odds favor Democrats retaking Congress in 2027.
A bill introduced by North Carolina Representative Don Davis would block federal candidates from trading on the outcome of their own elections, though it will not be taken up before the 2026 US midterms because Congress is in recess until after the vote.
Davis introduced the No Betting on Your Own Race Act on Monday. The proposal would prohibit federal candidates, their campaigns, their spouses and their children from “buying, selling, acquiring, disposing of, or holding contracts” tied to their own elections. Davis said the bill is meant to prevent market interference, insider trading and lawmakers from “cashing in” on elections. It would set a civil penalty of $10,000 for each violation, or three times any potential financial windfall.
Political event contracts in focus
The bill text does not explicitly name prediction market platforms such as Kalshi and Polymarket. Even so, it refers to “political event contracts,” indicating that activity on those platforms is the target.
The report cited an earlier case involving Republican House candidate Laurie Buckhout. In August, Kalshi gave Buckhout a three-year suspension and a $2,590 penalty over trading event contracts related to her own race. She did not face civil or criminal charges.
No action expected before the midterms
Davis’ bill will not be addressed before the 2026 midterm elections. The House and Senate are out of session until November, although the House has continued to hold some pro forma sessions.
Meanwhile, event contracts tied to US elections remain available on both Kalshi and Polymarket. According to the report, pricing on those platforms currently gives Democrats better odds of retaking Congress in 2027.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
