H.R. 7004 — Public Integrity in Financial Prediction Markets Act of 2026

This section prohibits covered individuals from knowingly engaging in covered transactions involving prediction market contracts if they possess material nonpublic information relevant to the transaction at the time or may reasonably obtain such information through official duties. Covered individuals include (1) elected federal officials, (2) House and Senate employees, (3) political appointees, and (4) Executive agency employees, as defined in 5 U.S.C. §105 (i.e., Executive departments, Government corporations, and independent establishments). Covered transactions are purchases, sales, or exchanges of prediction market contracts—financial instruments listed on or offered by platforms engaged in interstate commerce and tied to future events, including market-based event contracts related to government policy or action or political outcomes. Material nonpublic information means information a reasonable investor would consider important in making an investment decision that is not publicly available.