US EditionSenator Chris Murphy, Rep. Greg Casar target insider trading on prediction markets
The BETS OFF Act aims to ban prediction-market wagers on terrorism, war, and government actions to prevent insider trading and fraud, addressing $105 million wagered on the Oscars, Kalshi said.
- On Tuesday, Murphy and Casar introduced the BETS OFF Act at a Washington press conference to ban prediction markets on terrorism, war, and government actions.
- Evidence of well-timed trades on Polymarket prompted lawmakers after reports that suspicious prediction-market accounts placed significant bets before U.S. operations in Venezuela and Iran and Kalshi disciplined users for insider trading.
- The bill text specifies 'specified events' to include outcomes under complete control or known in advance, while providing a carveout to protect mainstream financial markets and block payments to offshore prediction-market platforms.
- The proposal would strip platforms of many existing markets and affect traders' access, as if enacted, betting on the Oscars and Super Bowl halftime show would be illegal and Kalshi reports traders wagered more than $105 million on the Oscars this year.
- Given Republican control of Congress, lawmakers say passage of the BETS OFF Act is uncertain, despite the CFTC asserting jurisdiction and multiple bills from Schiff, Blumenthal, and Torres being filed last week.
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Murphy seeks ban on insider bets in prediction markets
This story has been updated. As congressional Democrats tackle potential fraud in prediction markets, U.S. Sen. Chris Murphy, D-Conn., is seeking to crack down on wagers made on government actions and events where someone controls or knows the outcome in advance. The scrutiny of these online platforms has become a hot topic recently, especially among Democrats, stemming from concerns over well-timed trades that were made on U.S. military action …
Betting on the Oscars or the Super Bowl halftime show would be banned under new prediction market bill
Sen. Chris Murphy and Rep. Greg CasarTom Williams/CQ-Roll Call, Inc via Getty Images; Aaron Schwartz/Getty ImagesSen. Chris Murphy and Rep. Greg Casar introduced the "BETS OFF Act" to regulate prediction markets.It includes a ban on trades on events where insiders have control or knowledge about the outcome.That applies not just to government actions, but also to things like the Oscars.If two lawmakers on Capitol Hill get their way, making predi…
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