Democratic Senators Urge HHS to Regulate Prediction Markets Linked to Clinical Trials
Democratic Senators Angela Alsobrooks and Ron Wyden have sent a formal letter to Department of Health and Human Services (HHS) Secretary Robert F. Kennedy Jr., expressing concerns over prediction markets tied to clinical trials and FDA drug approvals. The senators argue that these event contracts could undermine the scientific process, create perverse incentives for researchers, and potentially influence patient decisions regarding trial participation. The lawmakers also highlighted significant risks regarding insider trading, suggesting that individuals with access to nonpublic regulatory or research data could profit unfairly. While Kalshi maintains it has implemented guardrails—such as limiting markets to late-stage trials and using employee verification—the senators are demanding transparency from HHS regarding its communications with prediction platforms and the Commodity Futures Trading Commission (CFTC).
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Topics: clinical trials FDA approvals healthcare regulation insider trading prediction markets