Senator Chris Murphy, Rep. Greg Casar target insider trading on prediction markets
Democratic lawmakers introduced the BETS OFF Act to ban government officials from betting on sensitive events with inside knowledge.Summary
U.S. Democrats, including Senator Chris Murphy and Representative Greg Casar, introduced the Banning Event Trading on Sensitive Operations and Federal Functions (BETS OFF) Act to outlaw corrupt wagers by government officials who possess inside knowledge of events like U.S. military actions, terrorism, or assassinations. The lawmakers are responding to reports of significant bets placed on prediction markets before U.S. operations in Venezuela and Iran. The bill would bar any bet with potential for insider trading, extending beyond government actions to events like surprise Super Bowl performers. While Republican control in Congress lessens its immediate priority, Democrats hope a potential House majority after the midterms will advance such legislation. The bill also seeks to block the CFTC from listing contracts related to these sensitive areas, addressing concerns raised by recent insider trading incidents on platforms like Kalshi.
(Source：CoinDesk)