Cortez Masto, Rosen, Merkley: CFTC Must Rein in Wildfire Bets on Prediction Markets

Washington, D.C. – Today, U.S. Senators Catherine Cortez Masto (D-Nev.) and Jacky Rosen (D-Nev.) joined a letter led by U.S. Senator Jeff Merkley (D-Ore.) to the Commodity Futures Trading Commission (CFTC) raising the alarm about offshore prediction markets allowing people to bet on wildfires. As wildfires burn in Nevada and across the nation , the Senators are demanding answers from the CFTC following public reporting that highlights the public safety and insider trading concerns of allowing prediction market platforms to offer bets on natural disasters such as wildfires . Senators Cortez Masto, Rosen, and Merkley were joined by Senators Alex Padilla (D-Calif.), Jeanne Shaheen (D-N.H.), Adam Schiff (D-Calif), Martin Heinrich (D-N.M.), Ron Wyden (D-Ore.), and Amy Klobuchar (D-Minn.). “Offering bets on destructive wildfires threatens to minimize communities’ suffering all so the rich and powerful can profit,” the Senators wrote. “There’s also the heightened risk – according to state and local fire officials – that individuals could be tempted to commit arson in order to make sure their bets are successful. By offering contracts on fires, prediction market sites run the risk of encouraging people to influence fires that have already started, creating additional concerns around public safety and insider trading.” The Senators pressed the CFTC to swiftly ensure regulated exchanges are not listing event contracts that allow users to profit from wildfires threatening communities nationwide. The full text of the letter can be found here . Senators Cortez Masto and Rosen have repeatedly called for more stringent oversight of prediction markets. They have previously called on the CFTC to prohibit prediction markets incentivizing physical injury, death, or war and to do more to combat insider trading in prediction markets. Cortez Masto and Rosen have also urged CFTC Chair Michael Selig to abstain from intervening in pending litigation involving prediction markets. ###