Democratic lawmakers urge CFTC to curb prediction markets and ban some event contracts
Updated
Updated · CNBC · Apr 30
Democratic lawmakers urge CFTC to curb prediction markets and ban some event contracts
13 articles · Updated · CNBC · Apr 30
Senator Jeff Merkley led the letter, joined by four Democrats, as the CFTC’s public comment period closed on Thursday.
They asked the agency to stop insider trading and bar contracts on elections, war, military actions, sports and some government actions without valid economic hedging interest.
The push follows a soldier’s arrest over Venezuela-related Polymarket bets, Kalshi sanctions on candidates, and wider clashes over whether sports event contracts are federally regulated derivatives or gambling.
Can regulators prevent corruption as billions flow into event-based betting markets?
With insiders betting on war and elections, can these new markets be trusted?
Are prediction markets the future of finance or just a high-tech casino?