Lawmakers point out that election betting could affect public trust in the electoral process and democracy.
Over $500 million has been risked for the 2024 election via the prediction platform Polymarket.
The CFTC is being asked to fasten it rule to prevent the use of money in U.S. elections.
US lawmakers are putting more effort into limiting betting on the 2024 presidential contest. Three House members and five senators petitioned the Commodities Futures Trading Commission (CFTC) on August 5 to approve a ban on election betting.Â
Why is Betting a Threat to U.S Election
In the letter prepared by the U.S. congress, senators have expressed their fear and the possible effects of betting in the upcoming U.S. elections.They warned that allowing betting could affect the integrity of the election process altering public trust in U.S. democracy. Â
The lawmakers said that supporting large bets on election outcomes, particularly by wealthy individuals and political insiders, could highly remove confidence in the electoral system.
They clarified that elections should not be used as a tool for profit, as this might favor financial paths over political beliefs. Their letter, directed to CFTC Chair Rostin Benham, calls for action to prevent the possible alteration of U.S. elections.
Polymarket Under Scrutiny Amid Surge in Election Bets
This comes as the prediction platform Polymarket has seen surge in activity, with over $500 million in bets placed on the 2024 presidential election. The platform has also attracted $319.7 million in risk on the Democratic nominee for 2024.Â
According to the platform, Trump is currently leading with a 52% while Kamala is at 48%.
Source: Polymarket
The platform has faced regulatory investigation before, including a $1.4 million fine from the CFTC in January 2022 for operating without the required registration.
As the U.S. presidential election approaches, issues over the impact of election betting are rising. Lawmakers are pressing the CFTC to act and implement the ban, focusing on broader anxieties about the influence of financial interests on democratic processes.
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