2 Senators Press HHS Over Drug-Trial Betting Markets and FDA Approval Contracts
Updated
Updated · CNBC · Nov 11
2 Senators Press HHS Over Drug-Trial Betting Markets and FDA Approval Contracts
3 articles · Updated · CNBC · Nov 11
Summary
Angela Alsobrooks and Ron Wyden asked HHS on Wednesday what safeguards it has imposed on prediction markets tied to clinical trials and FDA approvals, warning they could distort research and endanger patients.
The senators said betting on trial outcomes could sway patients considering enrollment and create insider-trading risks for researchers or regulators with access to nonpublic information.
Their letter seeks internal HHS communications on staff participation, contacts with Kalshi, Polymarket and the CFTC, and any departmental analysis of the markets' impact.
Kalshi, which launched the contracts in July, said it limits trading to late-stage trials after enrollment closes and uses employee verification, arguing similar concerns already exist in biotech equities.
The scrutiny widens pressure on a fast-growing market that Polymarket also offers internationally, raising broader questions about whether health regulation and drug development should be turned into tradable event contracts.