Congressman Torres Urges CFTC to Regulate Election Prediction Markets
Congressman Ritchie Torres has called on the Commodity Futures Trading Commission (CFTC) to regulate election-related prediction markets rather than blocking them. In a letter addressed to CFTC Chair Rostin Behnam, Torres urged the regulator to focus on promoting responsible innovation and working with platforms like Kalshi and Polymarket to ensure such markets are regulated rather than pushing traders towards illegal, unregulated platforms.
Torres emphasized the importance of promoting responsible innovation and collaboration with regulated market participants to ensure election-related contracts are conducted transparently and securely within regulated markets. He highlighted the potential harm to both election integrity and consumer protection if further legal challenges push traders towards illegal platforms.
Polymarket Faces Decline Amid Regulatory Uncertainty
Polymarket has seen a significant decline in activity over the last few days as regulatory pressure and uncertainty over election betting continue to mount. Daily active traders on the platform dropped by nearly 40% and daily trading volume fell dramatically amidst concerns over regulatory restrictions.
The CFTC has proposed limits on certain event contracts, particularly those related to political outcomes, citing concerns about market manipulation. Despite these challenges, Polymarket has gained mainstream recognition with Bloomberg integrating the platform into its financial terminals, indicating growing interest in decentralized prediction markets.
Debate Intensifies Over Election Prediction Markets
The debate over election prediction markets intensified following a federal court ruling in favor of Kalshi, allowing the platform to offer election-related contracts. However, the CFTC quickly filed an emergency motion to stay Kalshi’s election markets, raising concerns about potential manipulation and public trust in the democratic process.
Congressman Torres criticized the CFTC’s actions, urging the watchdog to accept the court’s ruling and focus on regulating these markets to ensure transparency, consumer protection, and election integrity. He warned against continued legal battles pushing traders towards unregulated platforms, further jeopardizing the integrity of elections.