Congress is scrambling to regulate prediction markets
TL;DR
Members of Congress are rushing to institute new regulatory guardrails around online prediction markets following a series of alleged insider trading scandals. Why it matters: As with cryptocurrency and artificial intelligence, this is proving to be yet another emerging tech policy area in which Congress finds itself struggling to stay ahead of the curve. More than a dozen bills have been introduced this year aimed at regulating betting markets, according to the Congressional Research Service.
Nauti's Take
Opportunity: Clearer rules for prediction markets would deter insider trading and shore up trust in a growing tech sector. Risk: If Congress keeps lagging behind — as with crypto and AI — shadow markets and loopholes will let bad actors thrive.
Practical: Users shouldn't bet on regulation landing soon — the next scandals will likely arrive well before the next laws.
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