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Senator Adam Schiff of California has put forward legislation that would outlaw prediction market contracts tied to terrorism, war, assassination, and death.
The proposal, called the DEATH BETS Act, removes the Commodity Futures Trading Commission’s discretion over such contracts and writes direct prohibitions into law. Schiff’s move sets up a clash with CFTC Chair Mike Selig, who has signaled support for prediction markets since coming on in December.
The bill is bicameral, introduced alongside Representative Mike Levin of California, and seeks to amend the Commodity Exchange Act so that no CFTC‑registered entity can list contracts involving war, terrorism, assassination, or an individual’s death.
“Over half a billion dollars was wagered on the timing of U.S. military strikes on Iran alone,” Levin said in a statement. “That is unacceptable, and this legislation puts a stop to it.”
On the same day, Senator Richard Blumenthal of Connecticut introduced a separate measure, the Prediction Markets Security and Integrity Act, aimed at tackling fraud in the sector.
CFTC already has authority to remove said contracts, bill will remove flexibility
At present, the CFTC can decide whether such contracts are “contrary to the public interest,” but that judgment depends on who leads the commission. Schiff’s proposal would take away that discretion and make the prohibition permanent.
The bill bars any CFTC‑registered exchange from listing contracts that involve or even closely correlate to a person’s death, setting a broad standard for enforcement.
“Betting on war and death creates an environment in which insiders can profit off of classified information, our national security is jeopardized, and violence is encouraged,” Schiff said. “There is no justification for gambling on lives, or public benefit to be derived by such a market.”
Blumenthal looking to ban dangerous and unethical contracts
Senator Richard Blumenthal is pressing for tighter rules on prediction markets, saying his proposal “puts guardrails on this out‑of‑control industry. It bans dangerous and unethical bets and protects consumers from fraud and other predatory practices.” His bill targets insider trading and market manipulation by applying what he described as “basic guardrails and safeguards.”
The measure would also return some oversight power to individual states, a move that runs against CFTC Chair Mike Selig’s recent push to assert full federal authority over prediction markets.
In addition to tackling fraud, Blumenthal’s legislation mirrors Schiff’s approach by banning contracts tied to war, death, and military action.
Source: Coin Desk
