U.S. Democratic Senator Chris Murphy has raised alarms over specific bets placed on the possibility of the United States going to war with Iran, suggesting insider information may have been involved. Murphy highlighted that individuals close to Trump might have had prior knowledge of military actions, potentially incentivizing them to influence such events for personal gain. In response, Murphy and Democratic Representative Mike Levin are drafting legislation to enhance oversight of prediction markets like Polymarket and Kalshi. Levin emphasized that profiting from foreknowledge of military actions should be illegal, noting that while the Commodity Exchange Act prohibits contracts on events like war, current regulations allow prediction markets too much flexibility.