Schiff Introduces ‘DEATH BETS’ Act to Ban Wagering on War and Assassinations

While current federal law gives the Commodity Futures Trading Commission (CFTC) some authority to block contracts deemed contrary to the public interest, the DEATH BETS Act seeks to remove that discretion and codify a total ban. The bill specifically targets contracts based on any agreement referencing military strikes, invasions or terrorist acts. If passed, it would outlaw contracts tied to the targeted killing of political figures or leaders, as well as any wager that correlates to the death of a specific person.

The legislation follows a chilling surge in market activity centered on the mortality of Iranian Supreme Leader Ayatollah Ali Khamenei. As traders poured capital into contracts speculating on the ageing leader’s death, the “ghoul pool” nature of these wagers ignited a firestorm on Capitol Hill.

The bill has been referred to the Senate Committee on Agriculture, Nutrition and Forestry, which oversees the CFTC. Rep. Mike Levin, D-Calif., has championed the effort in the House, arguing that the current system lacks the necessary safeguards to prevent people from “making money off the deaths of American service members.”

The introduction of the bill marks a significant step in the ongoing debate over how to regulate the rapidly evolving prediction economy, where almost any real-world event can now be turned into a tradable asset.