Nine Democratic senators are calling for the Commodity Futures Trading Commission to prohibit betting on wildfires, citing risks of arson and insider trading. They argue that such contracts incentivize profit from disasters.
In a letter to CFTC Chair Michael Selig, Senators including Jeff Merkley and Alex Padilla expressed concerns that wildfire event contracts could encourage criminal behavior and jeopardize public safety. They highlighted the potential for individuals to commit arson to ensure the success of their bets. The senators emphasized that profiting from destructive wildfires undermines the suffering of affected communities.