Six Democratic senators have called on the Commodity Futures Trading Commission (CFTC) to explicitly ban prediction market contracts that involve personal injury or death. In a letter to CFTC Chairman Michael Selig, the senators expressed concerns that such contracts pose a national security risk and urged the CFTC to reaffirm its prohibition on contracts linked to the death of individuals. They highlighted that federal regulations already ban contracts related to terrorism, assassination, and war.
The senators referenced recent Polymarket contracts, including those predicting a NASA mission explosion, the removal of Venezuelan leader Maduro, and the Russian military's capture of a Ukrainian town, as examples of dangerous incentives. The CFTC recently asserted its exclusive jurisdiction over the commodity derivatives market, emphasizing that states cannot regulate in this area.
US Senators Urge CFTC to Ban Death-Related Prediction Market Contracts
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