A coalition of U.S. lawmakers, spearheaded by Oregon Senator Jeff Merkley, is urging the Commodity Futures Trading Commission (CFTC) to implement a ban on gambling related to American elections. The group, which includes Senators Richard Blumenthal, Chris Van Hollen, Elizabeth Warren, and Sheldon Whitehouse, as well as Representatives Eleanor Holmes Norton, Jamie Raskin, and John Sarbanes, is deeply concerned about the potential impact of election betting on public trust in democracy.
In a letter addressed to CFTC Chairman Rostin Behnam, the lawmakers voiced their support for a proposed rule that would prohibit event contracts tied to U.S. election outcomes. They argue that allowing such markets could erode voter confidence and open the door to corruption, ultimately threatening the integrity of the electoral process.
“The last thing that voters heading to the polls need are bets waged on the outcome of that election. Voters need action, as proposed by the CFTC in this rule, to restore trust,” the lawmakers emphasized in their letter. “Elections are not a for-profit enterprise. Without this rule, voters will wonder if their vote mattered, and whether the outcome of the election was influenced by big money bets.”
The lawmakers expressed particular concern over the potential for wealthy individuals and corporations to place large wagers on election outcomes. They warned that this could lead to a perception that election results are influenced by financial interests rather than the will of the people. The commodification of elections, they argue, could fundamentally alter the motivations behind voting, replacing genuine political convictions with financial calculations.
One of the prime examples of the type of betting market the lawmakers are seeking to regulate is Polymarket, a prediction market platform operating on the Polygon blockchain. Polymarket has gained traction due to its transparency and wide range of betting options, allowing users to buy shares using USD Coin (USDC) and trade on various outcomes, including elections, sports, and cryptocurrency prices.
In July, Polymarket reported substantial growth, with over 1.5 million bets placed and a total trading volume exceeding $1 billion. The U.S. presidential election debate fueled much of this activity, with bets on the outcomes showing a 57% chance of former President Trump winning and a 39% chance for Vice President Kamala Harris, attracting tens of millions of dollars in wagers.
The lawmakers argue that allowing such markets to thrive poses a serious risk to democracy. “Election gambling fundamentally cheapens the sanctity of our democratic process,” they wrote. They called on the CFTC to act decisively to prevent the further degradation of public trust in elections and to safeguard the integrity of the democratic process from the influence of big money bets.
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