Democrat Senators Warn Prediction Markets Allowing Bets on Wildfires Threaten Public Safety

Democrat Senators Warn Prediction Markets Allowing Bets on Wildfires Threaten Public Safety

The prediction market website Polymarket had $1.2 million in bets placed on Los-Angeles area wildfires in 2025.

Democratic senators push CFTC to ban wildfire prediction markets

Nine Democratic senators are urging the Commodity Futures Trading Commission to reject event contracts tied to wildfires, warning the markets could give people a financial reason to commit arson. The group, led by Sen. Jeff Merkley of Oregon, sent a letter to CFTC Chair Michael Selig on Aug. 3 as wildfires continue to burn across the Pacific Northwest. The senators pointed to Polymarket, where more than $1.2 million in trades were placed on cont…

Arson spikes possible due to prediction markets’ rise, US senators warn

Nine United States senators have urged financial regulators to crack down on prediction markets’ rise, specifically the ability to bet on wildfires. The senators recently sent a letter to Commodity Futures Trading Commission Chairman Michael Selig, arguing he needs to “lead the charge” in regulating prediction markets, where people can place money on the outcome of future events. The letter comes after multiple state and local fire officials spo…