Polymarket Bank's bankruptcy prediction contract raises concerns among FDIC and members of Congress

The contracts betting on the collapse of institutions such as Wells Fargo, JPMorgan Chase, and Bank of America on Polymarket have raised concerns among FDIC officials and members of Congress. Some are worried that the scale of such contracts may expand or fuel real-life bank runs. Internal discussions within the FDIC believe that current ethical standards are sufficient to prohibit insiders from participating in transactions. Currently, the trading volume of contracts betting on bank failures before the end of the year is about $76000 (source: Bloomberg).