Democratic Lawmakers Advocate for Ban on Election Gambling
Several Democratic lawmakers, including Sen. Jeff Merkley and Sen. Elizabeth Warren, are pushing for the Commodity Futures Trading Commission (CFTC) to finalize a rule prohibiting gambling on U.S. elections. Their campaign aims to safeguard the integrity of the election process and rebuild public trust.
Ban Finalized: Lawmakers Defend Election Integrity
In a letter dated Aug. 5 addressed to CFTC Chairman Rosten Benham, lawmakers voiced concerns about the potential influence of Wall Street on election outcomes. They argue that allowing extensive political betting markets could disrupt elections and further erode public confidence in democracy.
“As the 2024 presidential election approaches, voters are already faced with a political system that allows the wealthiest individuals and corporations to funnel dark money into elections without disclosing it. The threat of violence and extremism is high, and the United States remains a target for foreign actors seeking to interfere in the election,” the lawmakers wrote.
Read more: How will blockchain be used for voting in 2024?
The lawmakers also highlighted the dangers of electoral gambling, asserting that it fundamentally undermines the sanctity of the democratic process. They argue that political gambling shifts focus from political beliefs to financial calculations, which can erode trust in elections.
“Allowing billionaires to make huge bets while donating to specific candidates or parties, and political insiders using non-public information to bet on elections, will further erode public trust in the electoral process,” they added.
Support for CFTC’s Proposed Rules
The lawmakers’ letter expressed support for the CFTC’s proposed rules, emphasizing that political primaries should not be treated as a “game” and that political event contracts do not serve the economic purpose of the futures market. They argued that regulating elections and campaigns falls outside the CFTC’s jurisdiction and could infringe on state responsibilities, as many states already prohibit betting on elections.
Senator Merkley had previously urged the CFTC to reject a proposal from private prediction market operators to allow gambling on U.S. elections. While the proposal was not approved, the lawmakers continue to advocate for measures to protect election integrity.
Learn more: Cryptocurrency Regulation: What Are the Pros and Cons?
Record Trading Volumes on Platforms Like Polymarket
Although not mentioned in the letter, prediction market platform Polymarket has seen significant trading volumes, with data from the Dune dashboard showing a monthly volume of $387.03 million in July. This surge is attributed to heightened anticipation and discussion surrounding the upcoming U.S. presidential election in November.
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