US Lawmakers Urge CFTC Action On Election Gambling Amid Polymarket Surge

By: Isha Das

In a significant move, a coalition of US lawmakers has called on the Commodity Futures Trading Commission (CFTC) to prohibit gambling on American elections. This request comes against the backdrop of soaring betting volumes on platforms like Polymarket, which recently hit an all-time high. The legislators, including prominent figures like Senators Elizabeth Warren, Richard Blumenthal, Chris Van Hollen, and Sheldon Whitehouse, as well as Representatives Eleanor Holmes Norton, Jamie Raskin, and John Sarbanes, voiced their concerns through a letter.

The lawmakers believe that election gambling severely undermines public trust and the democratic process. They have collectively urged the CFTC to finalize and implement a proposed rule to preserve the integrity of US elections. Although the letter does not specify any particular platform, it follows a significant spike in elections-related betting on Polymarket after notable political events involving former President Donald Trump and President Joe Biden. According to reports, Polymarket's total trading volume nearly doubled to $1 billion in July.

Expressing their disapproval, the lawmakers stated, "The last thing voters need are bets waged on the outcome of that election. Voters need action, as proposed by the CFTC in this rule, to restore trust. Elections are not a for-profit enterprise. Without this rule, voters will wonder if their vote mattered and whether the outcome of the election was influenced by big money bets." They assert that election gambling not only commodifies the electoral process but also poses significant ethical concerns that could shift voter motivations towards financial incentives.

Moreover, the legislators underscored the potential exploitation by political insiders using non-public information for personal gain, further degrading public trust. They warned, "Allowing billionaires to wager extraordinary bets while simultaneously contributing to a specific candidate or party, and political insiders to bet on elections using non-public information, will further degrade public trust in the electoral process." The lawmakers are pressing the CFTC to take decisive action to prevent the commodification of US elections and ensure the integrity of the democratic process.

Senator Jeff Merkley has also been actively involved in this issue, recently urging the CFTC to reject a private prediction market operator's proposal to legalize gambling on US election outcomes. The CFTC ultimately disapproved the proposal, echoing the broader legislative concerns.

In related news, a recent survey revealed that 41% of Polymarket bettors believe Bitcoin will drop below $45,000 before September. This trend highlights the platform's growing influence and shows how traders are leveraging market volatility for speculative bets, reflecting a broader trend of bearish sentiment among Polymarket users.