Congressman Don Davis has introduced a bill that would prohibit federal candidates from betting on their own elections in prediction markets.

The proposal would also apply to their spouses, children, and campaign committees. In addition, it would ban betting through other people and indirect ownership of event contracts. Violations would carry penalties of $10,000 per violation or three times the amount of the financial gain, whichever is greater.

The banned contracts would include wagers on whether a candidate will win, remain in the race, receive a certain share of the vote, the margin of victory, and their finishing place. In the November midterm elections, all 435 members of the House of Representatives and 35 of the 100 senators will be elected. According to Polymarket, Democrats are expected to control the Senate (65%) and the House (93%) after the election. However, the pro-crypto committee Crypto PAC is financially backing industry supporters from both parties — 19 Republicans and 13 Democrats.