H.R. 8771 — Campaign Event Contract Integrity Act

This section defines terms for the Act, including covered campaign-affiliated individuals who receive compensation from or provide services to candidates, committees, or political organizations; covered platforms that facilitate trading in political event contracts; material nonpublic campaign information such as internal polling, turnout projections, and fundraising data; and political event contracts based on Federal election outcomes, primaries, legislation approval, or other designated political events.

This section prohibits covered campaign-affiliated individuals from purchasing, selling, or trading political event contracts while in possession of material nonpublic campaign information. It bars disclosure of such information when trading use is reasonably foreseeable and prohibits any person from trading on their behalf to evade the restrictions.

This section requires covered platforms to establish policies, procedures, and controls to detect and prevent prohibited trading in political event contracts, identify suspicious activity by campaign-affiliated individuals, monitor concentrated or coordinated trading tied to campaigns, maintain records, and report suspicious activity to the Commodity Futures Trading Commission. It mandates disclosure of campaign employment, compensation, affiliation, or access to material nonpublic information for traders exceeding thresholds set by the Commission and directs the Commission to issue implementing rules within 180 days.

This section authorizes the Commodity Futures Trading Commission to investigate violations of this Act and bring civil enforcement actions in United States district court. It imposes civil penalties up to $250,000 or three times any profit gained or loss avoided, requires disgorgement of profits from prohibited trading, permits temporary or permanent trading bans on political event contracts, and allows referral of criminal violations to the Attorney General.

This section provides that the Act does not prohibit lawful political analysis based exclusively on publicly available information, journalism, academic research, or public commentary. It also exempts trading activity by persons without access to material nonpublic campaign information and the lawful operation of political event contracts otherwise permitted under Federal law.

This section provides that the Act does not alter the Commodity Futures Trading Commission's authority under the Commodity Exchange Act, modify or preempt existing Federal securities, commodities, campaign finance, fraud, ethics, or anti-corruption laws, prohibit political event contracts otherwise permitted under Federal law, or limit any Federal agency's authority to investigate or enforce violations of Federal law.