House Democrats Demand CFTC Crackdown on Offshore War Bets

Seven House Democrats pressed the CFTC over why it has not cracked down on war bets placed on offshore prediction markets.

“Seven House Democrats sent a letter Monday to Commodity Futures Trading Commission Chair Michael Selig, asking why the agency has not acted against offshore war bets tied to U”

Benzinga

The letter cites high-profile instances of alleged insider trading tied to U.S. military actions in Venezuela and Iran.

Benzinga

Kalshi is US-based and regulated by the CFTC; Polymarket is offshore but accessible to Americans.

The Commodity Exchange Act allows regulation when swap activities outside the US have a direct and significant connection with US commerce.

The letter raises concerns about conflicts of interest involving Donald Trump Jr.

The push comes amid rising concerns about insider trading on prediction markets.

Well-timed bets on the ouster of Nicolás Maduro and the U.S.-Israeli attack on Iran have raised eyebrows.

CNBC

Kalshi and Polymarket have both announced self-imposed guardrails to curb insider trading.

Laws preventing insider trading in commodities markets are more recent and untested.

The CFTC is fighting legal challenges, such as a New Jersey court ruling.

The letter questions whether the agency is aware of conflicts of interest involving Trump Jr.

“The ‘80s comedy depicts an insider trading scheme that spurred new regulation”

Marketplace.org

The Trump family's social media company has announced its own prediction market platform.

Lawmakers have requested a response by April 15.

The issues underscore the messy and novel terrain the CFTC must navigate.