Campaign Event Contract Integrity Act

The Campaign Event Contract Integrity Act aims to prevent insider trading in political event contracts by individuals affiliated with campaigns. It specifically prohibits covered campaign-affiliated individuals from purchasing, selling, or trading political event contracts when they possess material nonpublic campaign information , such as internal polling data, fundraising details, or campaign strategies, and also forbids them from disclosing such confidential information if it is foreseeable that it will be used for trading or from having others trade on their behalf to evade these rules. Furthermore, the legislation mandates that covered prediction market platforms establish robust policies and controls to detect and prevent prohibited trading activities, identify suspicious trading, and monitor concentrated activity. These platforms must maintain records, report violations to the Commodity Futures Trading Commission (CFTC), and require traders above certain thresholds to disclose campaign affiliations or access to nonpublic information, ensuring greater transparency. The CFTC is also tasked with promulgating implementing rules for these platform safeguards. The CFTC is empowered to investigate potential violations, bring civil enforcement actions, and impose significant penalties, including fines up to $250,000 or three times the profit gained, disgorgement, and trading bans. The Act clarifies that it does not prohibit lawful political analysis, journalism, or trading by individuals without access to insider information, nor does it alter existing federal laws or the CFTC's broader authority.