Overview
- Sen. Adam Schiff and Rep. Mike Levin introduced the DEATH BETS Act to bar CFTC‑registered exchanges from listing contracts tied to terrorism, assassination, war, or an individual’s death, removing agency discretion under the Commodity Exchange Act.
- CFTC Chair Mike Selig this week launched an advance notice of proposed rulemaking and issued an advisory on event contracts, seeking public comment and flagging manipulation risks in certain markets.
- Courts delivered conflicting rulings on whether event contracts fall under exclusive federal oversight or state gambling laws, with Ohio favoring state authority and a Tennessee judge siding with federal jurisdiction, and appeals now in motion.
- Kalshi faces a class‑action lawsuit over a ‘death carveout’ on its Khamenei market after $54 million in trading, prompting refunds, while Polymarket has removed controversial listings such as a nuclear‑detonation market.
- Additional measures in Congress would restrict event contracts and bar senior officials from trading them, as industry voices and a CAP analysis highlight insider‑trading and anonymity concerns and CME’s CEO calls for clearer lines between hedging and gambling.