Representatives Blake Moore (R-UT) and Salud Carbajal (D-CA) have introduced bipartisan legislation aimed at regulating prediction markets and strengthening oversight of event contracts. The bill, known as the Event Contract Enforcement Act, seeks to empower the Commodity Futures Trading Commission (CFTC) to prohibit contracts related to terrorism, assassination, war, gaming—including sports competitions—or illegal activity.
Event contracts are financial instruments used by various industries, including agriculture, to hedge against potential losses. However, in recent years some prediction markets have offered contracts on sensitive topics that could pose risks to national security and public safety or encourage insider trading.
“Under-regulated prediction markets have exposed America to needless public safety and national security risks by allowing traders to invest in outcomes related to sensitive matters like terrorism, assassination, war, or elections,” Rep. Moore said. “Prediction markets also sponsor sports-related contracts against the wishes of many states, including Utah, that would otherwise prohibit these contracts if offered as traditional sports betting. I am excited to partner with my friend, Rep. Carbajal, on this nonpartisan issue to ensure event contracts can continue to serve legitimate business interests while protecting Americans from risk.”
Rep. Carbajal added: “Under-regulated prediction markets are creating an environment ripe for insider trading. The monetization of military activities or election processes threatens our national security and further erodes public trust in government. The Event Contract Enforcement Act is a strong first step toward protecting consumers and upholding ethical standards across all levels of government. I am committed to working across the aisle to bring transparency and accountability to this under-regulated sector.”
The CFTC was established by Congress in 1974 to regulate derivatives markets under the Commodity Exchange Act. In 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act clarified the CFTC’s authority regarding certain contract types but did not require enforcement against them.
Supporters of the new legislation argue that requiring enforcement will help mitigate risks such as incentivizing criminal behavior for financial gain or encouraging leaks of sensitive information for profit.
Blake Moore has represented Utah’s 1st district in Congress since 2021 after succeeding Rob Bishop. He was born in Ogden in 1980 and currently resides in Salt Lake City. Moore graduated from the University of Utah with a BA in 2005.
The full text of the bill is available online.
