9 Democratic Senators Urge CFTC to Ban Wildfire Prediction Market Contracts
Nine Democratic senators from the United States have written to CFTC Chairman Michael Selig, urging the prohibition of prediction market event contracts related to wildfires. They argue that these contracts could encourage arson, insider trading, and pose risks to public safety. The senators noted that Polymarket had accepted over $1.2 million in bets related to the 2025 California Palisades and Eaton fires. They pointed out that some new platforms allow users to bet on wildfires, creating markets that enable speculation on destructive events. The senators are calling for the CFTC to restrict related betting before the wildfire season begins next year and to establish protective measures in both U.S. and offshore markets. Recent controversies surrounding prediction market regulation continue, with related cases in Minnesota, Kentucky, and Michigan involving federal and state regulatory authority.
-- Price
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