DEATH BETS Act
- Sponsor
- Sen. Schiff, Adam B. [D-CA]
- Committees
- Agriculture, Nutrition, and Forestry Committee (primary)
- Last action
- Mar 10, 2026
Bottom line
This bill aims to prevent speculative financial trading on events deemed morally objectionable or harmful, such as acts of war, terrorism, assassination, or individual deaths, by amending the Commodity Exchange Act.
What it actually does
This bill amends the Commodity Exchange Act to explicitly prohibit registered entities, such as financial exchanges and clearinghouses, from listing or accepting for clearing any agreements, contracts, transactions, or swaps that are based on an excluded commodity and involve, relate to, or reference terrorism, assassination, war, or similar activities. It also prohibits contracts related to an individual's death or that could be construed as closely correlating to an individual's death.
Proponents argue
Supporters argue this bill is necessary to uphold ethical standards in financial markets, preventing the commodification of human suffering and discouraging activities that could incentivize harmful outcomes. They believe such markets are inherently exploitative, could pose national security risks, or raise public safety concerns by creating perverse incentives.
Opponents contend
Critics might argue that such prohibitions could be an overreach of government regulation into financial markets, potentially stifling innovation in event-based trading or limiting legitimate risk-hedging activities. Some might also raise concerns about the broad interpretation of 'similar activities' or 'correlating closely to an individual's death' and its potential impact on other types of contracts.
The bill is exceptionally short and clear, making it very accessible for any reader to understand its core purpose quickly.
Section 2, amending Section 5c of the Commodity Exchange Act (7 U.S.C. 7a-2)
Prohibition on Listing of Contracts Relating to War, Death, and Similar Activities
This section amends the Commodity Exchange Act to prevent financial exchanges (registered entities) from offering or clearing any agreements, contracts, transactions, or swaps that are based on 'excluded commodities' and relate to terrorism, assassination, war, or similar activities. It also specifically prohibits contracts referencing an individual's death or that could be seen as closely linked to an individual's death. The Commodity Futures Trading Commission (CFTC) would be responsible for determining what constitutes 'similar activity'.
Supporters argue
Supporters argue this provision closes a loophole that allows for morally reprehensible and potentially dangerous speculative markets. They contend that trading on events like war or assassinations is unethical, could create perverse incentives, and undermines public trust in financial systems.
Critics contend
Critics might argue that this provision is overly broad, particularly with phrases like 'similar activity' or 'correlating closely to an individual's death,' which could lead to unintended restrictions on legitimate financial products or create regulatory uncertainty. Some may also argue it limits financial innovation or the ability to hedge against certain risks.
Tradeoffs
The provision balances the desire to maintain ethical financial markets and prevent perverse incentives against concerns about regulatory overreach and potential limitations on financial innovation or legitimate risk management.
The bill references 'an excluded commodity (as defined in section 1a(19)(iv))'.
Section 2, paragraph (1) and (2)
Why it matters:It is standard legislative practice to avoid reprinting lengthy definitions already present in statute, ensuring consistency with current law and avoiding redundancy.
Case for: Using existing definitions ensures consistency with current law and avoids redundancy, making the bill more concise.
Case against: Requires external legal knowledge to fully grasp the bill's scope, potentially obscuring its full implications for a casual reader.
Estimated impact: Clarifies that the prohibition applies to event contracts, which are typically based on non-financial outcomes like political events or natural phenomena, rather than traditional commodities or securities.