9 U.S. Democratic Senators Urge CFTC to Ban Wildfire-Related Prediction Market Contracts
2026-08-06 19:54
Odaily News: Nine U.S. Democratic senators have sent a letter to Commodity Futures Trading Commission (CFTC) Chairman Michael Selig, urging a ban on event contracts related to wildfires, arguing that such contracts could encourage arson, insider trading, and pose risks to public safety.
In the letter, the senators noted that Polymarket has accepted over $1.2 million in bets related to the 2025 Palisades and Eaton fires in California. They also pointed out that some new platforms allow users to wager on wildfires, with such markets enabling speculation on destructive events.
The senators stated that the CFTC should rein in such betting before the start of next year's wildfire season and establish safeguards in both U.S. and offshore markets. Recent disputes over prediction market regulation have persisted, with related cases in Minnesota, Kentucky, and Michigan raising questions about federal and state regulatory authority.
In the letter, the senators noted that Polymarket has accepted over $1.2 million in bets related to the 2025 Palisades and Eaton fires in California. They also pointed out that some new platforms allow users to wager on wildfires, with such markets enabling speculation on destructive events.
The senators stated that the CFTC should rein in such betting before the start of next year's wildfire season and establish safeguards in both U.S. and offshore markets. Recent disputes over prediction market regulation have persisted, with related cases in Minnesota, Kentucky, and Michigan raising questions about federal and state regulatory authority.
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