Democratic Senators Urge CFTC to Ban Political Event Betting
Sens. Elizabeth Warren and several Democratic lawmakers have called on the U.S. Commodity Futures Trading Commission (CFTC) Chair Rostin Behnam to promptly finalize regulations banning event contracts that enable wagering on political events.
In a letter sent on Monday, the senators emphasized that election betting “cheapens the sanctity of our democratic process.” They argued that these kinds of bets could alter individuals’ motivations for voting, transforming political beliefs into financial calculations.
The lawmakers expressed concern that allowing wealthy individuals to place large bets while contributing to specific candidates or parties, alongside political insiders betting on elections with confidential information, would undermine public trust in the electoral process.
“We urge you to promptly finalize and implement this rule to prevent the commodification of U.S. elections,” they stated. The letter was signed by Sens. Warren, Jeffrey Merkley (OR), Sheldon Whitehouse (RI), Chris Van Hollen (MD), Richard Blumenthal (CT), as well as Reps. Jamie Raskin (MD), John P. Sarbanes (MD), and Eleanor Holmes Norton (DC).
Earlier in May, the CFTC voted to propose a rule banning event contracts for betting on political contests, gaming, war, terrorism, and assassination. If finalized, such contracts would not be available for trading or clearing through CFTC-registered entities.
Event markets like Kalshi and Polymarket allow users to bet on various events, including upcoming U.S. elections. Behnam noted a significant increase in event contracts listed for trading since 2021.
As the 2024 election approaches, lawmakers stressed that voters already contend with a political system influenced by wealthy individuals and corporations funneling undisclosed dark money into campaigns. They cautioned that the heightened threat of violence and extremism is exacerbated by foreign meddling in elections, and the last thing voters need is to contend with bets on electoral outcomes.
Furthermore, lawmakers pointed out that the CFTC lacks the congressional authority to regulate election and campaign activities. Behnam has stated that permitting contracts related to political events would exceed the CFTC’s mandated scope and expertise.
Comments (0)