- Polymarket's recognition raises considerations about corruption and undue electoral affect.
- Lawmakers are urging the CFTC to ban election betting, citing considerations about belief in democracy.
- Senators stress that elections shouldn’t be swayed by the bets of rich people.
Polymarket, a prediction market powered by the Polygon blockchain, has come below scrutiny as US lawmakers step up efforts to ban playing on US elections.
Led by Oregon Senator Jeff Merkley, a bunch of lawmakers is urging the Commodity Futures Buying and selling Fee (CFTC) to finalize and implement a proposed rule that will ban betting on the result of the US election.
Lawmakers say such markets may erode public confidence in democracy, result in corruption and affect election outcomes.
The success of the polymarket places her at a crossroads
Polymarket permits customers to purchase shares utilizing USD Coin (USDC) and commerce varied occasion outcomes, together with elections, sports activities and cryptocurrency costs.
Its transparency and numerous betting choices have gained appreciable recognition, as evidenced by greater than 1.5 million bets and a complete commerce quantity exceeding $1 billion in July alone.
Nevertheless, this success additionally made Polymarket a focus within the pre-election playing debate.
Letter to CFTC Chairman Rostin Behnam
In a letter to CFTC Chairman Rostin Behnam, Senators Merkley, Richard Blumenthal, Chris Van Hollen, Elizabeth Warren and Sheldon Whitehouse, together with Representatives Eleanor Holmes Norton, Jamie Raskin and John Sarbanes, expressed critical considerations.
They identified that permitting betting on elections commodifies the democratic course of and shifts the motivation of voters from political conviction to monetary calculations.
Lawmakers have warned that such markets may enable rich people and companies to improperly affect election outcomes.
The letter highlighted the dangers of electoral playing, together with the potential for corruption and undermining voter confidence.
Lawmakers emphasised that elections are non-profit enterprises and will stay free from the affect of huge cash bets. They known as on the CFTC to behave shortly and implement the proposed rule to forestall additional commodification of American elections.
Because the 2024 elections strategy, the controversy about electoral playing and platforms like Polymarket continues to realize momentum.
The end result of this regulatory push may have important implications for the integrity of the US electoral course of and the way forward for political betting markets.
