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Washington Warns Polymarket's Bank Failure Bets Could Fuel Panic

Original: polymarket

Polymarket, the crypto-based prediction market, is offering bets on whether a major US bank will fail this year, drawing concern from Washington officials who fear such wagering could itself amplify depositor anxiety and fuel a bank run. The debate highlights growing scrutiny of prediction markets as their event contracts move into sensitive financial territory.

Why now: Regulators and commentators are worried that openly betting on bank failures could destabilise the banking system.

PolymarketWashingtonUS regulators

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Evidence

• Regulators Warn as Polymarket Host Bets on Major Bank Failures · SuaraGarut.ID
• Washington Fears Polymarket Bank Failure Bets Could Fuel Panic · PYMNTS.com

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