Prediction markets' new insider-trading restrictions aren't enough, bipartisan senators say

Core Viewpoint - Bipartisan senators are continuing their efforts to ban sports prediction market contracts despite new self-imposed insider trading restrictions by Kalshi and Polymarket [2][4] Group 1: Legislative Actions - Senators Adam Schiff and John Curtis introduced the "Prediction Markets are Gambling Act," which aims to give states control over sports betting and prohibit Commodity Futures Trading Commission-registered entities from listing prediction contracts [3][4] - The senators believe that the self-regulatory measures taken by Kalshi and Polymarket are insufficient to prevent insider trading [6] Group 2: Concerns Over Insider Trading - Schiff expressed concerns about the potential for significant insider trading that current regulations cannot address, citing examples of bettors accurately predicting events in the Iran war [6][7] - The senators highlighted the risks associated with betting on sensitive events, such as high school athletes, which could lead to unethical outcomes [6] Group 3: Economic Implications - A report from the Federal Reserve Bank of New York indicated that while only about 3% of the population engages in sports betting post-legalization, it correlates with a 0.3 percentage point increase in overall credit delinquency [8] Group 4: Political Support - Despite the challenges in Congress, Schiff and Curtis are optimistic about the bipartisan support for their bill, noting that areas of agreement are increasing [9]