Polymarket Faces Scrutiny as U.S. Lawmakers Push to Ban Election Gambling
- Polymarket’s popularity has raised concerns about corruption and improper electoral influence.
- Lawmakers are urging the Commodity Futures Trading Commission to ban election betting, citing democratic trust concerns.
- The senator stressed that the election should not be influenced by the bets of the wealthy.
Polymarket, a prediction market running on the Polygon blockchain, is under scrutiny as U.S. lawmakers step up efforts to ban gambling in U.S. elections.
A group of lawmakers, led by Oregon Senator Jeff Merkley, is urging the Commodity Futures Trading Commission (CFTC) to finalize and implement a proposed rule banning betting on the outcome of the U.S. election.
Lawmakers argue that such markets could erode public trust in democracy, lead to corruption, and influence election outcomes.
Concerns Over Polymarket’s Influence
The success of integrated markets puts Polymarket at a crossroads. It allows users to buy stocks using U.S. Dollar Coin (USDC) and trade based on the results of various events, including elections, sports, and cryptocurrency prices. The platform’s transparency and diverse betting options have earned it huge popularity, with over 1.5 million bets placed and a total transaction volume of over $1 billion in July. However, this success has also put Polymarket at the center of the election gambling debate.
Lawmakers Call for Action
In a letter to CFTC Chairman Rostin Behnam, Senators Merkley, Blumenthal, Van Hollen, Warren, Whitehouse, and Representatives Norton, Raskin, and Sarbanes expressed serious concerns. They stress that allowing betting on elections commodifies the democratic process, shifting voters’ motivations from political convictions to financial calculations. Lawmakers warn that such markets could allow wealthy individuals and corporations to exert undue influence on election outcomes, potentially leading to corruption and undermining voter confidence. They emphasize that elections should not be influenced by big money bets and call on the CFTC to act quickly to prevent further commoditization of U.S. elections.
As the 2024 election approaches, the debate over election gambling and platforms like Polymarket continues to intensify. The outcome of this regulatory initiative could have significant implications for the integrity of the U.S. electoral process and the future of the political betting market.
