US EditionLawmakers Call for CFTC Crackdown on Prediction Markets After Bet on Downed U.S. Airmen
Lawmakers say Polymarket let users wager on whether two U.S. airmen would be rescued, renewing concerns about war-related contracts and insider trading.
- On Monday, seven House Democrats led by Rep. Seth Moulton, D-Mass., demanded the Commodity Futures Trading Commission increase oversight of prediction markets after wagers on U.S. military actions in Iran.
- Surging popularity for prediction markets like Polymarket and Kalshi has sparked scrutiny over controversial event contracts, with critics raising concerns about potential insider trading and anti-gambling law violations.
- Polymarket acknowledged a wager on U.S. airmen in Iran last week "slipped through" internal safeguards, prompting lawmakers to cite existing CFTC rules prohibiting bets on terrorism, war, and assassinations.
- Lawmakers requested a response by April 15 regarding regulatory authority and potential conflicts of interest between market participants and government officials, including ties to the President's family.
- CFTC Chair Michael Selig argues federal authority supersedes state gaming regulations, having sued three states attempting to ban these platforms while asserting exchanges are supervised by experienced staff.
25 Articles
25 Articles
Lawmakers call for CFTC crackdown on prediction markets
Lawmakers are pressing securities regulators to crack down on amid several recent incidents of people using the increasingly popular platforms to bet on events tied to the and other government actions.In an April 6 letter to Commodity Futures Trading Commission Chair Michael Selig, seven House…
Prediction Markets May Face Federal Scrutiny: Kalshi CEO
Kalshi CEO Tarek Mansour has said federal regulators are likely to investigate fraud and insider trading in prediction markets as the sector expands, reported by Axios. Speaking on “The Axios Show,” Mansour acknowledged that fast-growing platforms dealing with bets on politics, war, sports and entertainment could attract bad actors.According to the report, Kalshi operates under oversight from the Commodity Futures Trading Commission, and Mansour…
U.S. House members press CFTC over inaction on prediction market insider trading
U.S. lawmakers have begun questioning the Commodity Futures Trading Commission over the agency’s inaction on alleged insider trading in prediction markets tied to geopolitical events. Seven members of the U.S. House of Representatives wrote a letter to CFTC Chair Michael…
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