Davis proposes election trading restrictions after opponent’s Kalshi suspension

Rep. Don Davis has introduced legislation to prevent federal candidates and certain people and organizations connected to them from trading contracts linked to their own elections, according to Crypto News.

The proposal, called the No Betting on Your Own Race Act, would cover candidates, their spouses, dependent children and campaign committees.

Proposed penalties and the Kalshi case

The bill would impose a civil penalty of at least 10,000 dollars or three times the net gain, according to Crypto News. That would establish a statutory penalty for the covered trading, rather than leaving enforcement solely to a market platform.

The legislation follows Kalshi’s action against Davis’s opponent, Laurie Buckhout. The platform suspended her for three years and fined her 2,589.96 dollars after she bought under 1,000 dollars of contracts on her own congressional race, Crypto News reported.

What it means for prediction markets

• The restriction is targeted: The proposal concerns contracts tied to covered candidates’ own elections, with spouses, dependent children and campaign committees also included.
• Platform sanctions and legislation are separate: Buckhout’s suspension and fine were imposed by Kalshi; the bill would introduce a civil penalty of at least 10,000 dollars or three times the net gain.
• Introduction is not enactment: The reported development is a proposed federal restriction, not an already-effective ban.