Following intense criticism, Polymarket has taken down a betting market related to the rescue of US service members in Iran. The market, which allowed users to bet on the timing of the rescue, sparked outrage among lawmakers, including Rep.
Seth Moulton, who deemed it 'disgusting' for reducing a military operation to a financial wager. Moulton has been a vocal critic of prediction markets, recently prohibiting his staff from using platforms like Polymarket and Kalshi due to concerns over potential policy influence. A Polymarket spokesperson stated that the market did not meet the company's integrity standards and was removed shortly after its appearance. The incident occurs amidst rising regulatory pressure on prediction markets, with congressional Democrats introducing legislation to ban contracts tied to sensitive topics.
Separately, senators have urged the Commodity Futures Trading Commission to prohibit markets linked to individual deaths, citing national security concerns. The CFTC has also filed lawsuits against several states for attempting to bypass federal oversight. The NFL has requested that operators avoid offering contracts that could be deemed objectionable or manipulable. Despite growing scrutiny, the market continues to expand, with Kalshi securing a license for margin trading and new players, including JPMorgan, entering the scene.