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U.S. lawmakers introduced the “Death Bets Act” targeting prediction markets tied to violence.
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The bill would ban contracts involving death, war, or assassination events.
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It would remove the CFTC’s discretion and impose an outright prohibition.
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The proposal follows growing controversy around prediction market platforms.
New Push to Regulate Event-Based Markets
Two Democratic lawmakers introduced legislation seeking to prohibit prediction market contracts tied to violent events.
Representative Mike Levin and Senator Adam Schiff unveiled the “Discouraging Exploitative Assassination, Tragedy, and Harm Betting in Event Trading Systems Act,” also known as the “Death Bets Act.”
The bill aims to ban trading contracts tied to death, war, and assassination events, arguing that such markets raise ethical and national security concerns.
Reducing Regulatory Discretion
Under current law, the Commodity Futures Trading Commission has the authority to block event contracts related to violence or terrorism if it determines they are against the public interest.
The proposed legislation would remove that discretion by explicitly banning such contracts altogether.
The move follows rising controversy surrounding prediction markets. Some platforms have allowed users to speculate on geopolitical conflicts and other sensitive events, prompting criticism from lawmakers and regulators.
