US lawmakers propose sweeping crackdown on unchecked prediction markets
US lawmakers are pushing new bills to tighten controls on prediction markets. The proposed legislation targets everything from insider trading to bets on government decisions and violent events. Several members of Congress have now introduced measures to regulate or ban certain activities on these platforms.
The wave of bills comes as platforms like Kalshi and Polymarket grow in popularity. Among the first proposals, Rep. Dina Titus introduced a bill to stop sports betting on prediction markets. Sen. Jeff Merkley and Sen. Amy Klobuchar followed with legislation to bar politicians from trading on these sites.
Sen. Chris Murphy and Rep. Greg Casar then proposed a ban on wagers tied to government decisions and events like the Oscars. Rep. Ritchie Torres, the only lawmaker from New York in this group, introduced a separate bill to prohibit insider trading by officials on prediction markets. Other measures include Sen. Richard Blumenthal's call for broad regulation of the sector. Meanwhile, Rep. Blake Moore and Rep. Salud Carbajal have put forward bills to outlaw trading on contracts linked to terrorism, assassinations, and warfare.
The flurry of bills signals a crackdown on unchecked activity in prediction markets. If passed, the laws would restrict betting on sensitive topics and enforce stricter oversight. Only one state, New York, is represented among the lead sponsors of these proposals.
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