A bipartisan group of U.S. senators is preparing to introduce legislation that would ban sports betting on prediction markets regulated by the Commodity Futures Trading Commission (CFTC), according to reports.

The proposed bill would prohibit CFTC-regulated entities from listing contracts related to sporting events, marking a significant regulatory intervention in the growing prediction markets industry. The legislation comes as prediction markets have expanded beyond traditional political and economic forecasting into entertainment and sports betting.

The move represents rare bipartisan cooperation on financial regulation, with senators from both parties backing the measure. The bill would specifically target prediction markets that fall under CFTC oversight, rather than affecting traditional sports betting platforms regulated at the state level.

Prediction markets allow participants to bet on the outcomes of future events, from election results to economic indicators. These markets have gained prominence in recent years as both forecasting tools and speculative vehicles, drawing increased regulatory scrutiny.

The CFTC has jurisdiction over certain prediction markets as derivatives markets, giving it authority to regulate contracts that derive their value from underlying events. The proposed legislation would carve out sports-related contracts from this regulatory framework, potentially forcing platforms to restructure their offerings or exit the sports betting space entirely.