Summary

Makes it unlawful for covered federal officials and employees to buy, sell, or exchange prediction-market contracts tied to government policy, government actions, or political outcomes when they possess material nonpublic information relevant to the trade or could reasonably obtain such information through their official duties. The text defines key terms including who is a covered individual, what counts as a prediction market contract, and what qualifies as material nonpublic information.

• Prohibits covered federal officials and employees from trading prediction-market contracts tied to government or political outcomes when they possess material nonpublic information or could reasonably obtain it through their duties.
• Covers elected officials, congressional staff, political appointees, and Executive Branch employees as defined by federal statute.
• Defines "prediction market contract" as contracts or derivatives offered by platforms engaged in interstate commerce tied to future events.
• Sets a knowledge standard: the prohibition applies when the person "knowingly" engages in the transaction with relevant nonpublic information or reasonable access to it.
• Provides a definition of "material nonpublic information" but does not in the provided text specify penalties or enforcement procedures.
• Broad phrase "could reasonably obtain such information in the course of official duties" potentially expands coverage beyond information already in hand.
• Prediction market platforms may face new compliance expectations to screen or restrict trades by covered individuals.