Sens. Schiff and Curtis on the Prediction Markets Are Gambling Act, state of DHS negotiations

Summary

• Senators Schiff and Curtis are introducing the "Prediction Markets Are Gambling Act" to ban sports-style betting on prediction markets, arguing they are indistinguishable from gambling.
• The core thesis is that regulation should reside at the state level; the CFTC's current posture represents an "end run" around state laws, as states like California and Utah prohibit such gambling.
• Cited example: Over $1 billion traded in prediction contracts just around the Super Bowl.
• Key concerns include the loss of potential state tax revenue and the threat of rampant insider trading (e.g., by athletes, government officials, or their associates) which is currently unregulated and difficult to police on blockchain-based platforms.
• They dismiss self-regulation by platforms (e.g., banning politicians or athletes from betting) as insufficient and "aspirational" without robust enforcement mechanisms.
• Both express optimism for bipartisan support in Congress to pass legislation, arguing the CFTC Chairman is moving in the wrong direction and Congress must step in.
• The conversation shifts to DHS funding. Both senators express a desire to resolve the shutdown quickly, emphasizing the need to pay TSA agents and address airport delays, even if disagreements remain on funding for specific agencies like ICE and CBP.
• Disagreement emerges on "sanctuary cities." Schiff defends them as local decisions on law enforcement priorities, while Curtis argues they undermine federal immigration law enforcement, though he frames his position around "rule of law with compassion."
• Both senators criticize using government shutdowns as a political tactic, with Curtis stating they never produce intended results and "punish the wrong people."