Catenaa, Wednesday, February 25- Six Democratic senators have urged the Commodity Futures Trading Commission to explicitly prohibit prediction market contracts tied to an individual’s death, warning such products pose national security and public safety risks.
In a letter sent Monday to CFTC Chairman Michael Selig, the lawmakers called on the agency to reiterate that it will categorically bar any contract that resolves upon or closely correlates to a person’s death.
The letter was led by Adam Schiff and signed by Sens. Richard Blumenthal, Cory Booker, Tim Kaine, Catherine Cortez Masto and Jacky Rosen.
The senators said federal commodity law already prohibits contracts involving terrorism, assassination or war.
They argued that recent listings on Polymarket highlight gaps in oversight. Examples cited included a contract questioning whether NASA’s Artemis II mission would explode, a market tied to the fate of Venezuelan leader Nicolas Maduro and a contract related to Russia’s invasion of Ukraine.
The lawmakers warned that such contracts could enable insider trading, reward nonpublic information and create incentives linked to human suffering or destabilizing events.
The letter comes as prediction platforms including Polymarket and Kalshi gain traction and as the CFTC asserts exclusive federal authority over derivatives markets.
The agency recently argued in federal court that states lack jurisdiction to impose their own prohibitions.
The CFTC did not immediately comment on the letter.
