Senators Urge CFTC Ban on Wildfire Prediction Markets Amid Safety Concerns

Nine Democratic senators demand CFTC prohibit wildfire betting contracts, citing $1.2M in Palisades/Eaton wagers and risks of arson or insider trading.

Woofun AI reports that nine U.S. Democratic senators have written to CFTC Chairman Michael Selig, calling for a prohibition on prediction market contracts tied to wildfires. The lawmakers argue that such instruments may incentivize arson and insider trading while endangering public safety. They highlighted that Polymarket processed over $1.2 million in bets concerning the 2025 Palisades and Eaton fires in California. The senators urged the CFTC to implement safeguards in both domestic and offshore markets before the start of next year's wildfire season. This appeal follows ongoing regulatory disputes in Minnesota, Kentucky, and Michigan regarding federal versus state authority over prediction markets.