Sen. Murphy alleges White House ‘insiders’ profited from Iran strike bets, pushes to ban prediction markets on government actions

Senator Chris Murphy announced he is preparing legislation to prohibit trading on prediction markets related to government actions, such as military strikes, citing corruption risks. This follows on-chain data showing six new wallets profited nearly $1 million by betting on a U.S. strike on Iran before it occurred on Polymarket. Murphy alleged that individuals with White House access could have placed these bets, suggesting that decision-makers might be incentivized by personal profit rather than national security if such markets are allowed to continue. The proposed bill would ban wagering on government actions like war-making or political speeches but would include exceptions for financial markets like Federal Reserve decisions. Rep. Mike Levin is preparing a companion measure in the House, supporting the move amid growing scrutiny over insider trading allegations tied to geopolitical prediction markets, including similar past incidents in Venezuela and Israel.

(Source：The Block)