Washington’s prediction market crackdown accelerated on March 10 after Sen. Adam Schiff and Rep. Mike Levin rolled out the DEATH BETS Act, a response to Iran-linked war contracts that lawmakers say drew more than half a billion dollars in wagers and fresh questions about suspicious trading profits.
The proposal would explicitly bar CFTC-registered entities from listing contracts tied to terrorism, assassination, war, or an individual’s death. Schiff said prediction markets in those categories have become “the Wild West,” while Levin said bets on the timing of U.S. military strikes on Iran topped “over half a billion dollars.”
March 10 bill adds force to a February enforcement warning
The bill lands just two weeks after the CFTC’s Division of Enforcement issued a February 25 advisory warning that fraud and misuse of nonpublic information in event contracts can violate the Commodity Exchange Act. That makes the Washington push broader than one viral market or one platform.
For traders, the message is that contract design is now under scrutiny alongside trading behavior. If the DEATH BETS Act advances, platforms offering crypto-linked event contracts could face pressure to delist war and death markets before any final enforcement case is filed.
What the Iran market data confirms, and what it does not
The cleanest reported figure is $529 million in Polymarket trading tied to contracts on the timing of the Iran attack, as cited by TechCrunch from Bloomberg. A separate live Polymarket contract, “Khamenei out as Supreme Leader of Iran by February 28?”, showed $131,114,971 in volume.
Those figures support a large and politically explosive market, but they do not fully prove the headline’s exact $700 million total across platforms. That distinction matters because lawmakers are already using the broader ethical and market-integrity argument, even without a perfectly reconciled aggregate number.
Public reporting reviewed by Snopes said six newly created Polymarket wallets made roughly $1.2 million on Iran-strike timing bets. The pattern looked suspicious enough to intensify the backlash, but the reporting did not confirm who controlled the wallets or prove insider access.
Nicolas Vaiman said in the TechCrunch report that prediction markets “can create incentives for informed participants to act early.” Incentives, however, are not the same as proof of insider trading, and that is the line Washington regulators will have to test if scrutiny escalates into enforcement.
Why crypto markets should watch the next 72 hours
The wider crypto tape is back in risk-on mode, with Bitcoin at $72,558.76, up 2.3% in 24 hours, giving platforms little cover to argue that demand for event contracts is fading with the market cycle. The bigger threat is compliance risk, not weak volume.
What matters next is whether the DEATH BETS Act adds co-sponsors, whether the CFTC turns its advisory into case-by-case action, and whether operators move first by restricting war-linked contracts. For prediction markets connected to crypto rails, public trust and listing standards now look like the real battleground.
Disclaimer: This article is for informational purposes only and does not constitute financial or legal advice.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
