Finance
Lawmakers Raise Concerns Over Prediction Markets Tied to Clinical Trials
Two Democratic senators have expressed concern to the Department of Health and Human Services over prediction market event contracts tied to drug trials and FDA approvals.
Senator Angela Alsobrooks and Senator Ron Wyden sent a letter to HHS Secretary Robert F. Kennedy Jr. raising concerns that allowing individuals to bet on the success of clinical trials and drug approvals could undermine the scientific process and create dangerous incentives. They also highlighted potential insider trading risks and requested internal communications and analyses related to these prediction markets. Prediction platforms like Kalshi and Polymarket offer contracts related to these medical milestones, with Kalshi stating it has guardrails in place to limit trading risks. However, the senators argue that essential guardrails are needed to protect public trust and prevent individuals from profiting on the success of critical drugs.
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