A group of Democratic senators urged the Commodity Futures Trading Commission to rein in prediction market trading on wildfires, expressing concern that individuals could be tempted to commit arson to make their bets pay off. The lawmakers asked whether the agency plans to curb prediction market wildfire bets on both domestic and offshore platforms. Prediction markets have surged in popularity over the past 18 months and allow users to place bets on just about anything, from sports and award shows to geopolitical events. Another platform, Wyldfyre, has recently sprung up specifically for trading on California wildfires, touting: “You can’t predict fire, but you can trade on it.” “Not all prediction markets offer these markets — Kalshi prohibits them because they create perverse incentives,” the company said in an emailed statement.