New DEATH BETS Act Would Stop Betting on Wars and Death, Say US Lawmakers

US lawmakers, including Rep. Mike Levin and Sen. Adam Schiff, introduced the bipartisan Discouraging Exploitative Assassination, Tragedy, and Harm Betting in Event Trading Systems Act (DEATH BETS Act) to explicitly prohibit prediction markets from listing contracts related to wars, terrorism, assassinations, or individual deaths. This legislation aims to close regulatory loopholes, as current authority under the Commodity Exchange Act for the CFTC to block such contracts is discretionary. The push comes after high trading volumes, including over $500 million wagered on the timing of U.S.-Iran strikes, raised national security concerns about insider trading and profiting from tragedy. Platforms like Polymarket and Kalshi have recently hosted controversial contracts speculating on geopolitical events, including the timing of military strikes and the fate of leaders, with reports suggesting insider accounts profited significantly. Lawmakers argue the bill is necessary to prevent speculation from incentivizing leaks or encouraging violence.

(Source：CCN)