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Sen. Warren Pushes CFTC to Finalize Ban on Political Betting
The top crypto critic takes aim at Polymarket and other prediction markets.
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Sen. Elizabeth Warren and other Democratic lawmakers have asked the CFTC to finalize a rule banning financial contracts that allow bets on political events.
What's the scoop?
- Sen. Warren and colleagues sent a letter to CFTC Chair Rostin Behnam, calling for the banning of political event betting contracts. The lawmakers argue that betting on elections undermines the sanctity of the democratic process by raising up financial calculations over political considerations.
- “Allowing billionaires to wager extraordinary bets while simultaneously contributing to a specific candidate or party, and political insiders to bet on elections using non-public information, will further degrade public trust in the electoral process,” the lawmakers said.
- Notably, the proposed rule would also ban event contracts related to assassinations, terrorism, and war.
Bankless take:
This year political betting has risen to the fore of crypto thanks to Polymarket’s surging popularity ahead of the 2024 U.S. presidential election. In this light, the push to ban political event contracts underscores the tension between innovative financial products like Polymarket and how these products affect or are perceived in mainstream U.S. political circles.