Public Integrity in Financial Prediction Markets Act of 2026

HR 7004 prohibits federal elected officials, congressional staff, political appointees, and executive branch employees from trading prediction market contracts using material nonpublic information about government policy, actions, or political outcomes. It bans any purchase, sale, or exchange of these contracts when the individual possesses or could reasonably obtain such nonpublic information - defined as important investment details not available to the public. The bill directly affects government insiders who might otherwise trade on inside knowledge of upcoming decisions or election results through prediction markets. Key provisions clarify that covered transactions include any financial instrument tied to future government events, listed on platforms operating across state lines. This creates a specific insider trading rule for prediction markets, distinct from general securities laws.