US legislators call for CFTC crackdown on election gambling as Polymarket betting hits ATHs

A coalition of US lawmakers has called on the Commodity Futures Trading Commission (CFTC) to prohibit gambling on American elections.

Several legislators endorsed the letter, including Senators Elizabeth Warren (D-MA), Richard Blumenthal (D-CT), Chris Van Hollen (D-MD), and Sheldon Whitehouse (D-RI), along with Representatives Eleanor Holmes Norton (D-DC), Jamie Raskin (D-MD), and John Sarbanes (D-MD).

The lawmakers emphasized the detrimental impact of election gambling on public trust and the democratic process and called for immediate action to finalize and implement a proposed rule aimed at preserving the integrity of US elections.

Although the letter does not specify any platform or crypto, it comes after elections-related betting hit a record high on Polymarket following an attempt on former President Donald Trump’s life and President Joe Biden’s withdrawal from the 2024 presidential race.

The platform’s total trading volume almost doubled to $1 billion in July following the events.

‘Commodification of elections’

The lawmakers criticized the trend, writing:

“The last thing voters need are bets waged on the outcome of that election. Voters need action, as proposed by the CFTC in this rule, to restore trust. 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 argued that election gambling fundamentally undermines the sanctity of the democratic process. They warned that such practices could shift voter motivations from genuine political convictions to financial incentives, leading to significant ethical concerns.

Additionally, they raised concerns that political insiders could potentially exploit non-public information for personal gain, further eroding public trust in the electoral process.

The letter stated:

“Allowing billionaires to wager extraordinary bets while simultaneously contributing to a specific candidate or party, and political insiders to bet on elections using non-public information, will further degrade public trust in the electoral process.”

The lawmakers urged the CFTC to take action and prevent the “commodification” of US elections.

Merkley also recently wrote a similar letter urging the CFTC to reject a proposal from a private prediction market operator that sought to legalize gambling on US election outcomes. The CFTC ultimately disapproved the proposal.

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