Title IX: Fighting Executive Corruption
The execute branch and civic service should never be a place for profit - especially insider trading. Fighting executive corruption is the 9th title of the MAD Act. Read the full bill title below.
TITLE IX of The MAD Act
PREVENTING PREDICTION MARKET INSIDER TRADING
SECTION 9001. SHORT TITLE.
This title may be cited as the "Preventing Prediction Market Insider Trading Act".
SEC. 9002. RESTRICTIONS ON TRADING ON PREDICTION MARKETS.
(a) RESTRICTIONS.—Chapter 131 of title 5, United States Code, is amended by adding at the end the following new subchapter:
"SUBCHAPTER IV—RESTRICTIONS ON TRADING ON PREDICTION MARKETS
"§ 13151. Definitions
"In this subchapter:
"(1) COVERED INDIVIDUAL.—The term 'covered individual' means any of the following:
"(A) A Member of Congress as defined in section 13101 of this title.
"(B) A dependent child as defined in such section 13101 or a spouse of a Member of Congress.
"(C) An individual or entity with fiduciary duties and the authority to enter into or offer to enter into an agreement, contract, or transaction with respect to prediction markets for any individual described in subparagraph (A) or (B).
"(D) An officer or employee of the Congress as defined in such section 13101.
"(E) The President.
"(F) The Vice President.
"(G) A political appointee.
"(H) Each officer or employee in the executive branch, including a special Government employee, as defined in section 202 of title 18, and any officer or employee of an independent agency, who occupies a position classified above GS-15 of the General Schedule or, in the case of positions not under the General Schedule, for which the rate of basic pay is equal to or greater than 120 percent of the minimum rate of basic pay payable for GS-15 of the General Schedule; each member of a uniformed service whose pay grade is at or in excess of O-7 under section 201 of title 37; and each officer or employee in any other position determined by the Director of the Office of Government Ethics to be of equal classification.
"(I) A judicial officer as defined in section 13101 of this title.
"(J) A judicial employee as defined in section 13101 of this title.
"(2) INDEPENDENT AGENCY.—The term 'independent agency' has the meaning given the term 'independent establishment' as defined in section 104 of this title.
"(3) POLITICAL APPOINTEE.—The term 'political appointee' means an individual—
"(A) occupying a position described under sections 5312 through 5316 of this title (relating to the Executive Schedule);
"(B) serving under a noncareer appointment in the Senior Executive Service, as defined under paragraph (7) of section 3132(a) of this title; or
"(C) occupying a position in the executive branch of the Government of a confidential or policy-determining character under schedule C of subpart C of part 213 of title 5, Code of Federal Regulations.
"(4) PREDICTION MARKET CONTRACT.—The term 'prediction market contract' means any agreement, contract, transaction, or swap that—
"(A) provides for any purchase, sale, payment, or delivery that is dependent on the occurrence, nonoccurrence, or extent of the occurrence of a specific political event; and
"(B) is listed on, offered by, or entered into through any platform, exchange, or facility, regardless of whether the platform, exchange, or facility is registered with the Commodity Futures Trading Commission or is domiciled or operated within the United States.
"(5) SPECIFIC POLITICAL EVENT.—The term 'specific political event' means any of the following, whether occurring within the United States or elsewhere:
"(A) The outcome of an election for public office, a primary election, a nomination, or a ballot measure.
"(B) The enactment, defeat, amendment, or other disposition of legislation, a treaty, or a resolution by Congress or a State legislature.
"(C) An action, decision, appointment, removal, or rulemaking by an officer or employee of the executive branch, an Executive agency, or an independent agency.
"(D) A decision, ruling, or grant or denial of review by a court of the United States or a State court.
"(E) Any other official act, decision, or proceeding of the Federal Government or a State government, or of an officer or employee thereof.
"(6) SUPERVISING ETHICS OFFICE.—The term 'supervising ethics office'—
"(A) has the meaning given the term in section 13101 of this title; and
"(B) in the case of an independent agency, means the Office of Government Ethics.
"§ 13152. Trading on prediction markets
"(a) CONDUCT DURING FEDERAL SERVICE.—No covered individual may enter into, or offer to enter into, a prediction market contract.
"(b) INTERPRETATIVE GUIDANCE.—The supervising ethics office shall issue interpretive guidance on any relevant term not defined in this subchapter.
"§ 13153. Penalties
"(a) IN GENERAL.—
"(1) PENALTIES.—Any covered individual who violates the restrictions in section 13152 of this title shall, at the direction of the supervising ethics office—
"(A) pay a fee equal to ten percent of the value of the agreement, contract, or transaction in violation; and
"(B) disgorge the profits of any agreement, contract, or transaction that violates the provisions of such section 13152.
"(2) PAYMENT OF PENALTY TO TREASURY.—A penalty imposed under subparagraph (A) or (B) of paragraph (1) shall be payable into the Treasury.
"(b) PAYMENT RESTRICTIONS.—A covered individual may not pay any of the penalties under this section from the following sources:
"(1) The Members' Representational Allowance.
"(2) The Senators' Official Personnel and Office Expense Account.
"(3) Any contribution (as defined in section 301(8) of the Federal Election Campaign Act of 1971 (52 U.S.C. 30101(8))) accepted as a candidate, and any other donation received as support for activities of the individual as a holder of Federal office.
"(4) Any other source of funds, other than a salary, available to such individual through employment or service in the Federal Government.
"(c) PUBLICATION.—Each supervising ethics office shall publish on a publicly available website a description of—
"(1) each fine assessed by the supervising ethics office pursuant to this section;
"(2) the reason why each such fine was assessed; and
"(3) the result of each assessment.".
(b) CLERICAL AMENDMENT.—The table of sections for chapter 131 of title 5, United States Code, is amended by adding at the end the following:
"SUBCHAPTER IV—RESTRICTIONS ON TRADING ON PREDICTION MARKETS
"13151. Definitions.
"13152. Trading on prediction markets.
"13153. Penalties.".
Note: LLMs were used to standardize the language in this document and formalize the text appropriate for formal introduction.
Title IX — Prediction Market Insider Trading
Acknowledging the Legislative Foundation This Title Builds On
Title IX of the MAD Act is adapted from the Preventing Real-time Exploitation and Deceptive Insider Congressional Trading Act (or, the "PREDICT Act"), which was introduced in the 119th Congress on March 25, 2026, by Representative Nikki Budzinski (D-IL-13) and Representative Adrian Smith (R-NE-03). We are grateful to Representatives Budzinski and Smith, their staffs, and the bipartisan coalition behind the PREDICT Act, whose legislative text we drew from heavily.
This Title also builds on the financial-disclosure and conflict-of-interest architecture established by the Ethics in Government Act of 1978 (Pub. L. 95–521) and extended by the Stop Trading on Congressional Knowledge (STOCK) Act of 2012 (Pub. L. 112–105), both codified at Chapter 131 of Title 5, United States Code, and amended herein by the addition of a new Subchapter IV. We thank everyone for advancing this work, which we hope to carry forward in the MAD Act.