US Senator Targets Prediction Markets, Citing War Bets and Insider Risks

US Senator Chris Murphy announced plans to introduce legislation to ban prediction markets, labeling them "corrupt and destabilizing" platforms where insiders exploit advanced knowledge of geopolitical events for financial gain. Murphy cited Polymarket odds related to military strikes involving Israel and Gaza as an example. However, industry experts, including Kalshi co-founder Tarek Mansour, argue that Murphy is conflating regulated domestic exchanges with offshore platforms. Federally regulated US prediction markets, like Kalshi, are strictly prohibited by the Commodity Futures Trading Commission (CFTC) from listing war or terrorism markets. Analysts like Adam Cochran support this, noting that offshore platforms serving US customers already face CFTC enforcement, while domestic markets operate under rigorous federal oversight to prevent the insider trading Murphy seeks to stop. Murphy's move aligns with broader regulatory efforts, such as a recent bill introduced by Rep. Ritchie Torres targeting government officials trading on these markets with nonpublic information.

(Source：BeInCrypto)