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Bipartisan lawmakers propose limits on prediction markets involving war, elections, and sports

ReadWrite·@SuswatiBasu·2 months ago
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A bipartisan pair of lawmakers in the House wants federal regulators to clamp down on certain prediction markets, arguing that some platforms now allow trades tied to events that could raise serious national security and public safety concerns. U.S. Reps. Blake Moore, a Republican from Utah, and Salud Carbajal, a Democrat from California, have introduced legislation called the Event Contract Enforcement Act. Their proposal would direct federal regulators to block specific types of event-based trading contracts that lawmakers say are becoming increasingly controversial. Prediction markets let people buy and sell contracts that pay out depending on how real-world events unfold. For years, those tools were commonly used in industries such as agriculture to hedge against uncertainty. But Moore and Carbajal say the industry has moved far beyond that original purpose.…

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