At the crossroads of American democracy, a legislative effort on election integrity is underway!
Led by Senator Jeff Merkley, Elizabeth Warren and other key legislative voices are urging the Commodity Futures Trading Commission (CFTC) to take decisive steps to ban gambling on the election.
The proposed rules banning political betting markets are intended to ensure the integrity of elections is not threatened by financial manipulation and to protect the purity of the democratic process from being eroded.
Establishing a ban and promoting election integrity
In an August 5 letter to CFTC Chairman Rostin Benham, lawmakers led by Senator Jeff Merkley expressed deep concerns about the election, arguing that the existence of a political betting market could have an undue influence on election results and undermine public trust in the democratic system.
The lawmakers noted that as the 2024 election approaches, American voters already face a climate vulnerable to wealthy individuals and companies funneling unidentified money into campaigns with little transparency, while the country suffers from threats of violence and extremism and continued foreign interference in elections.
The lawmakers stressed that electoral gambling not only undermines the sanctity of the democratic process, but also could shift the focus from political ideas to financial gains, a shift that reduces public trust in elections. They warned that allowing billionaires to make huge bets while donating to specific candidates or parties, or allowing political insiders to bet using inside information, would further erode public trust in the electoral process.
The letter also expressed support for the CFTC's proposed rule, saying that the results of political campaigns should not be used to "gamble" on the futures market because it is contrary to the public interest. At the same time, some lawmakers believe that the CFTC does not have the authority of Congress to regulate elections and campaigns, and many states have banned election betting, which may illegally deprive state governments of their rights.
Earlier, Senator Merkley sent a letter to the Commodity Futures Trading Commission (CFTC), urging it to reject a proposal by private prediction market operators to legalize U.S. election gambling. On its official website, Merkley announced that the CFTC did not adopt the proposal.
Although no specific platforms were mentioned in the letter, trading volume on prediction market platform Polymarket has hit record highs. According to data from the Dune dashboard, Polymarket's monthly trading volume reached $387.03 million in July, an increase that reflects the growing anticipation and discussion about the upcoming US election. #CFTC #参议员 #选举赌注 #赌注禁令
Conclusion:
In this legislative action on election integrity, Democratic lawmakers such as Senators Merkley and Warren have demonstrated their firm commitment to protecting the integrity of democracy. Their urging of the CFTC is not only a warning of the potential risks in the political betting market, but also a clear action to maintain public trust and election integrity.
Although the CFTC has rejected proposals to legalize election gambling, the surge in trading volume in prediction markets such as Polymarket is a reminder of the need to find a balance between financial innovation and regulation.
At the same time, in the face of these challenges, legislators, regulators, and the public need to work together to ensure market fairness and transparency, laying the foundation for protecting investors' interests.
