The U.S. Democratic Party plans to introduce legislation to restrict prediction markets, raising concerns over insider trading related to the Iran war.

PANews March 6 News: According to Cointelegraph, U.S. Democratic Senator Chris Murphy posted a video on X platform stating that last Friday, someone placed a “very specific bet” that “the U.S. will go to war with Iran on Saturday.” He pointed out that it is obvious that individuals close to Trump knew about the Saturday action in advance, and these bettors likely had insider information. Murphy warned that if such war betting continues, people around the President might profit from it and “push us into war.” Last Saturday, multiple related bets were widely circulated on Polymarket.

Reuters reports that Murphy and Democratic Congressman Mike Levin are working on drafting legislation to strengthen regulation of prediction markets like Polymarket and Kalshi. Levin stated that profiting from foreknowledge of military actions “is absolutely illegal.” He pointed out that the Commodity Exchange Act prohibits contracts involving events that conflict with public interest, such as war and terrorism, but current rules give prediction markets too much freedom.