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Senate Democrats Press CFTC to Ban Death-Linked Prediction Contracts

Democrats cite national-security risks, urging a categorical ban on event contracts that resolve on a person's death.

Overview

  • Six Democratic senators, led by Adam Schiff, sent a letter this week asking CFTC Chair Michael Selig to explicitly prohibit contracts that resolve on or closely correlate with an individual's death.
  • The letter cites recent Polymarket listings involving a potential Artemis II explosion, the removal of Nicolás Maduro, and the capture of Myrnohad as examples of harmful incentives and insider risk.
  • Polymarket said the Artemis II market focused on a booster-stage hardware failure rather than astronaut safety, and it withdrew the listing after public backlash.
  • The push comes as the CFTC filed a brief asserting exclusive federal jurisdiction over commodity derivatives and Selig warned states against imposing their own bans in a Wall Street Journal op-ed.
  • Industry groups said U.S.-regulated platforms already bar death-related contracts and urged enforcement against offshore exchanges, while firms including Polymarket explore re-entry to the U.S. through licensed channels.