Six Senators Pen Letter to CFTC Asking for Prediction Bans

It appears federal lawmakers aren’t done sounding the alarm over unregulated prediction markets.

This week, a group of six U.S. senators, all Democrats, sent a letter to Commodity Futures Trading Commission Michael Selig regarding prediction markets. In it, they highlighted controversial markets, including events such as the failure of a space launch and the Russia-Ukraine war.

The Senators pointed to the inherent dangers these markets present, and asked Selig to take action. The six Senators are requesting a ban on all markets involving deaths, violence, or geopolitical conflicts. 

In addition to asking for bans, they also asked for clarity on the regulations Selig has promised to set for the prediction industry. Given its growth over the last year, the transition in the CFTC led to the industry being largely unregulated. This raises fears over problem gambling, as well as insider trading. 

The letter requests that Selig respond by March 9, sharing his thoughts and plans for the industry’s future. 

The following Senators signed the letter to the newly appointed CFTC Chairman:

• Adam Schiff (CA)

• Richard Blumenthal (CT) 

• Cory Booker (NY)

• Tim Kaine (VA)

• Catherine Cortez Masto (NV)

• Jacky Rosen (NV)

Integrity of US Sports Highlighted

While the letter covered a wide array of topics, one of the most significant involved protecting the integrity of US sports.

The country has seen several betting scandals uncovered over the last year alone, some involving stars and Hall of Famers. This has raised alarms over protecting the integrity of sports leagues, and the sports betting industry is still scrambling for a solution. 

There are concerns that the CFTC and prediction operators aren’t ready to tackle that issue. Controversial markets involving Giannis Antetokounmpo’s trade destination and the recent State of the Union sparked rumors of market manipulation.

While a lack of evidence makes it hard to know whether those rumors are true, their prevalence shows how much Americans are losing trust in the integrity of their sports leagues and government. While Selig may reject overbearing regulation, he may be willing to help address this growing problem.