US Senator Proposes Ban on Prediction Markets for Government Actions

US Senator Chris Murphy is set to introduce legislation this month aimed at prohibiting prediction markets related to government actions, such as military strikes. According to NS3.AI, this initiative comes in response to onchain data revealing that six newly funded wallets profited $989,191 from a Polymarket market concerning a US strike on Iran, after purchasing 'yes' shares just hours before the airstrikes commenced. Murphy's proposed bill seeks to ban trading on events like war-making or politicians' speeches, while excluding financial markets from this restriction. Despite the proposed changes, prediction platforms like Kalshi and Polymarket reported a combined trading volume of approximately $18.3 billion in February.