Sen. Blumenthal Announces Bill To Regulate Prediction Markets
Co-sponsored by Sen. Andy Kim, D-N.J., the bill would restrict betting on military actions, among other things
WASHINGTON, March 12, 2026 – Are you hoping to bet on the next drone strike in the Iran war? Sen. Richard Blumenthal, D-Conn., thinks you shouldn’t.
On Wednesday, the Senator introduced the “Prediction Markets Security and Integrity Act” a bill that would regulate prediction markets to ban “wagers on war, crack down on insider trading, and protect consumers from fraud” according to the announcement.
“Prediction markets have become a haven for insider trading, market manipulation, and underage gambling. These billion-dollar businesses are turning war into a casino game, and creating a market for national security leaks,” said Blumenthal in a statement.
Kim added that by instilling some basic guardrails, consumers would be better protected from exploitation in a largely unregulated industry.
The text of the bill notes that prediction markets offer essentially the same service as gambling, wagering and sports betting and that foreign prediction markets are offering these services in violation of state and federal laws.
As a result, harms have occurred such as fixing of wagers based on insider information and the mishandling of sensitive corporate and government information such as bets on “the downfall of Venezuelan President Nicolas Maduro or military action against Iran”.
In the House, Rep. Dina Titus, D-Nev., introduced the “Fair Markets and Sports Integrity Act”, noting in a Post on X that prediction markets are essentially circumventing state gambling laws. Her bill would amend the “Commodity Exchange Act” to prevent prediction markets from engaging in this behavior.
Regulators are starting to take more of an interest in prediction markets. The Commodity Futures Trading Commission, or CFTC, announced on Thursday that it is seeking public comment on advanced notice of proposed rule-making on event contracts.
Chairman of the CFTC Michael S. Sleig noted that while they intend to continue to promote responsible innovation in derivatives markets, new rule-making may be necessary due to the rapid rise in popularity.
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