H.R. 10732 – Reading Mode

119th CONGRESS

2d Session

H. R. 10732

IN THE HOUSE OF REPRESENTATIVES

October 5, 2026

Mr. Davis of North Carolina introduced the following bill; which was referred to the Committee on House Administration

A BILL

To amend title 52, United States Code, to prohibit candidates for Federal office from trading in contracts on the outcome of their own elections, and for other purposes.

Short title

This Act may be cited as the No Betting on Your Own Race Act.

Trading by candidates in contracts on their own elections

(a)

In general

Subchapter I of chapter 301 of title 52, United States Code, is amended by adding at the end the following:

30147.

Trading by candidates in contracts on their own elections

(a)

Definitions

In this section:

(1)

Candidate

The term candidate has the meaning given the term in section 301 of the Federal Election Campaign Act of 1971 (52 U.S.C. 30101).

(2)

Covered platform

The term covered platform means any registered entity, designated contract market, swap execution facility, broker, intermediary, or other platform that facilitates trading in political event contracts.

(3)

Political event contract

The term political event contract means any agreement, transaction, swap, option, contract, derivative, or other event contract that allows a person to purchase, sell, trade, or otherwise obtain direct financial exposure based on the outcome of—

(A)

a Federal election;

(B)

a primary election;

(C)

a caucus;

(D)

the nomination of a candidate;

(E)

control of Congress;

(F)

any other political or governmental event by rule by the Commodity Futures Trading Commission.

(4)

Covered election contract

The term covered election contract means, with respect to a candidate, a political event contract the payout or resolution of which depends on—

(A)

the outcome of an election, primary election, caucus, convention, or nomination contest in which the candidate is seeking nomination for election, or election, to Federal office;

(B)

whether the candidate is, becomes, or remains a candidate in such a contest; or

(C)

the vote share, margin, or placement of the candidate in such a contest.

(5)

Covered person

The term covered person means, with respect to a candidate, the candidate, a spouse or dependent child of the candidate, or an authorized committee of the candidate as defined in 52 U.S.C. § 30101(6).

(b)

Offense

Whoever, being a covered person purchases, sells, acquires, disposes of, or holds any interest, directly or indirectly, in a covered election contract with respect to the candidate shall be civilly fined under 52 U.S.C. § 30109 $10,000 per violation; or an amount equal to 3 times the net financial gain attributable to the violation, whichever is greater.

(c)

Indirect interests

For purposes of subsection (b), a person acts indirectly if the person—

(1)

causes, directs, requests, or induces another person to acquire, hold, or dispose of the interest;

(2)

holds a beneficial interest in the interest, however titled; or

(3)

provides funds used by another person to acquire the interest, with knowledge of the intended use.

(e)

Divestment

It shall not be a violation of subsection (b) for a person to hold an interest in a contract that becomes a covered election contract with respect to that person, or to dispose of such an interest, during the minimum period required by covered platforms to divest such contract, beginning on the date on which the person becomes a candidate.

(f)

Protection for covered platforms

(1)

No liability under this section

No penalty under this section shall apply to a covered platform, or to any officer, director, employee, or agent of a covered platform acting within the scope of that person’s duties.

(2)

Good faith compliance actions

A covered platform, and any officer, director, employee, or agent thereof, shall not be liable to any person under any Federal or State law, or under any contract, for any action taken in good faith to prevent or remedy a violation of subsection (b), including restricting, suspending, or closing an account, or cancelling, voiding, or unwinding a position or transaction.

(3)

Good faith reporting

A covered platform, and any officer, director, employee, or agent thereof, shall not be liable to any person under any Federal or State law for reporting in good faith a suspected violation of this section to the Commodity Futures Trading Commission, the Attorney General, or the Federal Election Commission, and shall not be required to notify any person that such a report has been made.

Publication of candidate information and candidate notification

(a)

In general

The Federal Election Commission shall establish and maintain a publicly available, machine-readable list of each individual who is a candidate (as defined in section 301 of the Federal Election Campaign Act of 1971 (52 U.S.C. 30101)), which shall include, for each such individual—

(1)

the name of the individual and any identifier assigned to the individual by the Commission;

(2)

the office sought; and

(3)

the date on which the individual became a candidate and, if applicable, the date on which the individual ceased to be a candidate.

(b)

Availability

The Commission shall make the list described in subsection (a) available at no charge and shall update the list not less frequently than weekly.

(c)

Candidate notification

The Federal Election Commission, in coordination with State and territory boards of elections, shall ensure that each individual who is a candidate (as defined in section 301 of the Federal Election Campaign Act of 1971 (52 U.S.C. 30101)) is notified, when a candidate files for Federal office, of the prohibitions and requirements under this Act.

Effective date

This Act, and the amendments made by this Act, shall apply with respect to conduct occurring on or after the date of enactment of this Act.