- A bill to regulate prediction market offerings would remove military action markets and prevent insider trading.
- Senator Richard Blumenthal’s Prediction Markets Security and Integrity Act include sections for “protecting consumers from fraud and manipulation” and “preventing minors from gambling”.
- Blumenthal wants prediction markets to be regulated at the state level rather than federally, doing so with a state wagering program.
WASHINGTON – U.S. Senator Richard Blumenthal’s Prediction Markets Security and Integrity Act “bans wagers on war, cracks down on insider trading, and protects consumers from fraud” by returning regulatory oversight to the states. Blumenthal proposes a state wagering program to regulate prediction market apps and enforce wagering laws in every state with Attorney General approval.
“Prediction markets have become a haven for insider trading, market manipulation, and underage gambling. These billion-dollar businesses are turning war into a casino game, and creating a market for national security leaks,” said Blumenthal in an announcement.
“My measure—the Prediction Markets Security and Integrity Act—puts guardrails on this out-of-control industry. It bans dangerous and unethical bets and protects consumers from fraud and other predatory practices.”
How Does The Bill Impact Prediction Market Regulation?
Alongside co-sponsor Andy Kim, the Prediction Markets Security and Integrity Act would greatly change the way prediction markets are regulated in the United States. Some specific changes from the bill include:
- Federally enforced prevention against insider trading and manipulation of prediction market offerings.
- Ban prediction markets for war-related listings like military actions and death counts.
- State legal sports betting program that emphasizes advertising limitations and reverses Commodity Futures Trading Commission efforts preventing state regulation.
- Implement age verification, a self-exclusion list, and ban advertising to underage individuals.
Blumenthal also reintroduced the Gambling Addiction Recovery, Investment and Treatment Act, which uses federal funds to study and treat gambling addiction in the United States.
