US lawmakers are moving to ban prediction markets from offering contracts related to war, murder, terrorism or someone’s death.
Senator Adam Schiff says he is introducing legislation aimed at banning so-called ‘death bets’ on prediction market platforms.
“Betting on war and death creates an environment where insiders can profit from non-public information, endangers our national security and encourages violence. Congress must act.”
The proposal, known as the DEATH BETS Act, would ban any exchange registered with the Commodity Futures Trading Commission from listing contracts that reference or relate to terrorism, murder, war or the death of an individual.
Representative Mike Levin introduces companion legislation in the House of Representatives.
Supporters of the bill argue that existing law gives regulators the authority to block such contracts if they are deemed contrary to the public interest, but leaves the CFTC with too much discretion.
The new legislation would explicitly ban these markets altogether.
Lawmakers say the move comes after prediction platforms listed controversial contracts tied to geopolitical events and changes in political leadership.
One example cited by Schiff’s office involved a market speculating on whether Iran’s Supreme Leader would be removed from power, which reportedly generated tens of millions of dollars in trading volume before it was halted.
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