Senators Target Drug Betting

It's Benzinga, bringing Wall Street to Main Street. Two Democratic senators are raising concerns about prediction markets tied to clinical drug trials and Food and Drug Administration approvals, according to CNBC. Senators Angela Alsobrooks and Ron Wyden asked Health and Human Services Secretary Robert F. Kennedy Jr. what measures the department has taken to address potential risks. The senators warned that the contracts could undermine scientific research, influence trial participation, and create insider trading risks. Kalshi and PolyMarket both offer the contracts, although PolyMarket's are available only on its international exchange. When Kalshi launched its drug trial prediction markets in July, it introduced safeguards limiting contracts to late-stage trials that had completed enrollment. The company also pledged to use employee verification technology for all traders participating in the markets. The company argued that similar concerns apply to investors trading biotechnology and pharmaceutical stocks. Polymarket and HHS did not immediately respond to CNBC's requests for comment. For all things money, visit Benzinga.com.