U.S. Legislators Target Crypto Prediction Markets with New ’DEATH BETS Act’

Washington is drawing a hard line against prediction markets tied to violent events. Senator Adam Schiff (D-CA) and Representative Mike Levin introduced legislation to explicitly ban contracts related to terrorism, assassination, war, or individual deaths on CFTC-registered platforms. The move strips the agency's discretionary authority under current Commodity Exchange Act rules.

The bill directly impacts crypto-native prediction markets like Polymarket's U.S. licensed operations and traditional platforms such as Kalshi. It arrives as CFTC Chair Rostin Behnam considers overhauling prediction market regulations, signaling heightened scrutiny of event contracts in digital asset ecosystems.

While the legislation doesn't mention specific cryptocurrencies, its passage could chill innovation in decentralized prediction platforms. The proposal reflects growing political discomfort with on-chain mechanisms for wagering on real-world events—particularly those involving harm.