Summary#
The No Betting on Your Own Race Act would amend title 52 of the U.S. Code by adding rules to the Federal Election Campaign Act. Its stated goal is to prohibit federal candidates and certain people connected to them from trading contracts tied to the candidate’s own election. The bill was introduced and referred to the House Committee on House Administration; it is not law.
- Candidates, their spouses and dependent children, and their authorized campaign committees could not directly or indirectly buy, sell, acquire, dispose of, or hold an interest in a contract tied to that candidate’s election, nomination, candidacy, vote share, margin, or placement.
- A violation would carry a civil fine of $10,000 per violation or three times the net financial gain attributable to it, whichever is greater.
- A limited exception would allow a person to hold or dispose of a contract that becomes covered when they become a candidate, during the minimum divestment period required by covered platforms.
- The Federal Election Commission (FEC) would have to publish a free, machine-readable list of candidates and update it at least weekly. It would also have to ensure candidates are notified of the bill’s rules when they file.
- Covered trading platforms would not face penalties under this section. They would also receive protections for good-faith steps to prevent or remedy violations and for good-faith reports of suspected violations.
What it means for you#
- Federal candidates and their families: Candidates, their spouses and dependent children, and their authorized committees would be barred from holding or trading contracts tied to the candidate’s own contest. The bill also covers indirect interests, such as directing someone else to trade or knowingly providing money for that purpose.
- Candidates who already hold a contract: The bill allows holding or disposing of a contract during the minimum divestment period required by covered platforms, starting when the person becomes a candidate. The bill does not set the length of that period.
- Trading platforms: Platforms may take good-faith steps such as restricting or closing accounts, or cancelling or unwinding a position, without liability under federal or state law or contract. They may also report suspected violations without notifying the person reported. The bill does not require platforms to monitor or report.
- Candidates and the public: The FEC would have to publish candidate names, identifiers, offices sought, and dates they became or ceased to be candidates. The bill does not directly change who may vote, who may run, or how elections are counted.
Money#
No cost information is in the available material.
- The bill requires the FEC to create and maintain a public list and ensure candidate notifications, but gives no cost estimate or staffing details.
- It sets civil fines for violations. The bill does not say how fine revenue would be used.
What is unclear#
- The Federal Election Campaign Act was not supplied, so the current candidate definition and the enforcement procedures referenced by the bill could not be checked against current law.
- The bill does not explain how violations would be identified, investigated, or decided beyond referring to the existing civil-fine process.
- “Political event contract” includes other political or governmental events that the Commodity Futures Trading Commission may add by rule. The bill does not specify which additional events might be covered.
- The bill does not set a divestment period; it refers to the minimum period required by covered platforms.
- It does not explain how the FEC and state and territory election boards would ensure candidates receive notice.
Case for#
- The bill appears intended to prevent candidates and close family or campaign entities from having financial interests in the outcome of the candidate’s own contest.
- Covering indirect interests addresses ways a person might hold or arrange a trade through someone else.
- A public candidate list could give covered platforms information they may need to identify candidates and apply the restriction.
- The exception for a platform’s required divestment period could give a newly declared candidate time to dispose of an existing contract.
Case against#
- The prohibition reaches spouses, dependent children, campaign committees, and indirect interests, but the bill does not explain how those interests would be identified or distinguished from a person’s independent actions.
- The bill gives platforms broad protection for good-faith actions, including closing accounts and unwinding positions, without spelling out a review or appeal process for affected people.
- The meaning of “political event contract” could expand through later CFTC rules, so the full scope may not be clear from this bill alone.
- The bill requires new FEC duties but provides no cost estimate, staffing plan, or operational details.