US Democrats are considering legislation to restrict prediction markets, raising concerns about insider trading related to the Iran war.

PANews reported on March 6th, citing Cointelegraph, that US Democratic Senator Chris Murphy posted a video on the X platform stating that someone placed "very specific bets" last Friday that "the US will go to war with Iran on Saturday." He pointed out that people close to Trump clearly knew about Saturday's actions in advance, and these bettors likely had inside information. Murphy warned that if such war betting continues, those around the president might "push us into war" because they could profit from it. Several related bets circulated widely on Polymarket last Saturday.

Reuters reports that Murphy and Democratic Representative Mike Levin are drafting a bill to strengthen regulation of prediction markets such as Polymarket and Kalshi. Levin stated that profiting from predictions of military operations "should absolutely be illegal." He pointed out that while commodity laws prohibit contracts involving events "against the public interest," such as war and terrorism, current rules grant prediction markets too much freedom.