End Prediction Market Corruption Act

In this subsection:

The term covered individual means—

(i) the President;

(ii) the Vice President; and

(iii) a Member of Congress.

The term event contract means an agreement, contract, transaction, or swap in an excluded commodity that is based on an occurrence, extent of an occurrence of, or contingency.

The term material nonpublic information means information—

(i) that a reasonable investor would consider important in making a decision regarding purchasing, selling, or otherwise exchanging an agreement or contract in a commodity or a commodity for future delivery; and

(ii) that is not publicly available.

The term Member of Congress has the meaning given the term in section 13101 of title 5, United States Code.

The term senior executive branch official means any officer or employee described in any of paragraphs (3) through (8) of section 13103(f) of title 5, United States Code.

No covered individual may purchase, sell, or otherwise exchange an event contract.

No senior executive branch official may purchase, sell, or otherwise exchange an event contract the subject of which is a matter in which the senior executive branch official participates personally and substantially as a Government officer or employee, through decision, approval, disapproval, recommendation, the rendering of advice, investigation, or otherwise, in a judicial or other proceeding, application, request for a ruling or other determination, contract, claim, controversy, charge, accusation, arrest, or other particular matter.

The Attorney General may bring a civil action in the appropriate United States district court against any individual who engages in conduct in violation of paragraph (2).

In a civil action under subparagraph (A), if it is demonstrated by a preponderance of the evidence that the individual has violated paragraph (2), the individual shall be subject to a civil penalty of not more than the greater of—

(i) $10,000 for each violation; and

(ii) the amount of profit made through the purchase, sale, or exchange of the event contract in violation of paragraph (2).

The imposition of a civil penalty under this paragraph does not preclude any other criminal or civil statutory, common law, or administrative remedy that is available by law to the United States or any other person.

In this paragraph, the term foreign board of trade means a board of trade that—

(i) is organized under the laws of a non-United States jurisdiction or has its principal place of business outside the United States; and

(ii) avails itself of any means or instrumentality of interstate commerce in the conduct of its business as a board of trade.

Each foreign board of trade shall submit to the Commission quarterly reports describing each purchase, sale, or other exchange on the foreign board of trade in violation of paragraph (2).

A foreign board of trade that fails to submit a report required by subparagraph (B) shall be subject to revocation of the registration of the foreign board of trade by the Commission.

The Commission shall issue a rule to restrict the inappropriate use of material nonpublic information, in breach of an express or implied duty not to use or disclose such material nonpublic information, as a means of making a profit through the purchase, sale, or other exchange of an event contract, including by requiring designated contract markets to prohibit the purchase, sale, or other exchange of an event contract by such individuals as the Commission determines to be appropriate in the public interest.

Section 13104(a) of title 5, United States Code, is amended by adding at the end the following:

In this paragraph:

The term covered reporting individual means an individual described in paragraphs (1) through (10) of section 13103(f).

The term dependent child has the meaning given the term in section 13101.

The term event contract has the meaning given the term in subsection (d)(1) of section 5c of the Commodity Exchange Act (7 U.S.C. 7a–2).

Each report filed pursuant to subsection (d) or (e) of section 13103 by a covered reporting individual shall include—

(i) a statement of whether, during the period covered by the report, the covered reporting individual, or the spouse or dependent child of the covered reporting individual, purchased, sold, or otherwise exchanged an event contract; and

(ii) with respect to any event contract described in clause (i), a description of the event contract and the value of the event contract.

Section 13105 of title 5, United States Code, is amended by adding at the end the following:

For purposes of this subsection, the terms covered reporting individual and event contract have the meanings given those terms in section 13104(a)(9)(A).

Not later than 30 days after receiving notification of any event contract transaction required to be reported under section 13104(a)(9), but in no case later than 45 days after such event contract transaction, a covered reporting individual shall file a report of the transaction that includes a description of the event contract that is the subject of the transaction and the value of the event contract.