House Democrat targets candidate prediction market trades after opponent’s Kalshi penalty

Rep. Don Davis, D-N.C., is seen outside the Democratic National Committee on Thursday, September 19, 2024. Tom Williams | CQ-Roll Call, Inc. | Getty ImagesWith less than a month until the midterm elections, prediction markets' political contracts are in focus as observers look to see if they'll accurately forecast who will win various races across the country. But one Democratic representative wants to restrict candidates from trading on those contracts. Rep. Don Davis, D-N.C., introduced a bill on Monday to ban candidates for federal office from trading on prediction market contracts related to their own elections, his office shared exclusively with CNBC.Introduced during a pro forma session of the House of Representatives, the "No Betting on Your Own Race Act" seeks to formally put into law what platforms themselves have already been enforcing on their own. Prediction markets have actively sought to curb individual candidates from trading on their own contracts due to concerns about insider trading. Davis' proposal would apply a fine of $10,000 or an amount equal to three times the net financial gain from the violation — whichever figure is larger — to individuals who are caught ...