- The recognition of polymarkets raises considerations of corruption and undue affect on elections.
- Lawmakers urged the CFTC to ban election betting, citing considerations about belief in democracy.
- The senators careworn that elections shouldn’t be influenced by the bets of rich people.
Polymarket, a prediction market that operates on the Polygon blockchain, has come underneath scrutiny, as US lawmakers step up efforts to ban playing in US elections.
A gaggle of legislators led by Oregon Senator Jeff Merkley is urging the Commodity Futures Buying and selling Fee (CFTC) to finalize and implement a proposed rule that may prohibit betting on US election outcomes.
Lawmakers argue that such markets might erode public confidence in democracy, promote corruption and affect election outcomes.
Polymarket’s success brings it to a crossroads
Polymarket permits customers to purchase shares utilizing USD Coin (USDC) and commerce on the outcomes of assorted occasions together with elections, sports activities, and cryptocurrency costs.
Its transparency and numerous betting choices have gained important recognition, evidenced by over 1.5 million bets and Total trading volume exceeds $1 billion Alone in July.
Nonetheless, this success has additionally made Polymarket a focus within the debate on electoral playing.
Letter to CFTC Chairman Rostin Behnam
certainly one of Letter CFTC Chairman Rostin Behnam, Senators Merkley, Richard Blumenthal, Chris Van Hollen, Elizabeth Warren, and Sheldon Whitehouse, in addition to Representatives Eleanor Holmes Norton, Jamie Raskin, and John Sarbanes expressed severe considerations.
He careworn that permitting betting in elections commoditizes the democratic course of, and shifts voters’ motivations from political opinions to monetary calculations.
Lawmakers warned that such markets might enable rich people and firms to exert undue affect on election outcomes.
The letter highlighted the hazards of electoral playing, together with the potential for corruption and undermining voter confidence.
The lawmakers emphasised that elections are non-profit enterprises and should stay free from the affect of huge cash being wagered. They referred to as on the CFTC to take swift motion to implement the proposed rule and stop additional commoditization of US elections.
Because the 2024 election approaches, the controversy on electoral playing and platforms like Polymarket is gaining momentum.
The result of this regulatory effort might have important implications for the integrity of the US election course of and the way forward for political betting markets.
