Prediction Market Act of 2026

The Prediction Market Act of 2026 establishes a regulatory framework for "event contracts," which are financial agreements based on the outcomes of specific real-world occurrences rather than commodity prices. This legislation directly affects designated contract markets, swap execution facilities, and futures commission merchants by requiring them to list these contracts only after a review to ensure they do not involve unlawful activities, terrorism, assassination, war, violence, or gaming. To protect retail investors, the bill mandates enhanced disclosure requirements, anti-money laundering compliance programs, and the creation of a new Office of the Retail Advocate to assist consumers and analyze market issues. Additionally, the Act prohibits Members of Congress and executive branch officials from trading in event contracts and directs the Commodity Futures Trading Commission to conduct studies on market growth and potential fraud.