Legislation Proposed to Ban Prediction Market Contracts on War and Death
- Lawmakers Mike Levin and Adam Schiff introduced the DEATH BETS Act, targeting prediction contracts related to terrorism, assassination, war, or an individual’s death.
- The bill aims to amend the Commodity Exchange Act to explicitly prohibit such contracts by any CFTC-registered entity.
- CFTC Chairman Michael Selig plans to expand the regulatory framework for prediction markets and has directed staff to draft guidance on event contract listings.
- Over $500 million was wagered on the timing of U.S. military strikes on Iran, highlighting concerns over these types of prediction markets.
The DEATH BETS Act seeks to remove discretionary power from the Commission regarding prohibiting contracts that run contrary to public interest, mandating a ban regardless of agency leadership. This move comes amid criticism of prediction markets tied to geopolitical conflicts and political violence.
The legislation underscores concerns about national security risks posed by such markets, which could incentivize violence and geopolitical conflicts through financial gain opportunities based on sensitive events. (Source)
