Who could have predicted that age-gating large sections of the internet in a crusade to shield children's eyeballs from vaguely defined "harmful content" would have disastrous consequences and wouldn't ultimately protect kids? Apparently, the United Kingdom's online regulator, Ofcom, couldn't.
On Thursday, Ofcom released a report assessing whether the government should make changes to the content categories of the 2023 Online Safety Act, a set of laws which require companies operating in the U.K. to prevent children from "accessing harmful and age-inappropriate content and provide parents and children with clear and accessible ways to report problems online when they do arise." The act's "child safety regime" (Ofcom's words) went fully into effect in 2025, when porn websites in the country began checking IDs. Unfortunately, as Reason's Elizabeth Nolan Brown has pointed out, the age-verification rule has impacted far more than adult websites. Already, the Online Safety Act has age-gated a wide range of content, including war news, the "NoFap" subreddit, and a historic art image, creating a mass chilling effect online.
Ofcom's report, however, says little about these age-gating concerns for adults, and its own findings highlight the act's underwhelming results. In the report, Ofcom notes that "Most children in the UK say they have encountered at least one piece of harmful content online in a four-week period." It adds that "at a total level there was no significant change in the proportion of children encountering harmful content over the first nine months after the children's safety duties came into force in July 2025." So, it appears the act is requiring adults to fork over their IDs to access a wide range of content, some of which is innocuous, while playing a never-ending and unsuccessful game of whack-a-mole trying to eliminate "harmful" online content from kids' feeds.
Instead of suggesting to repeal the Online Safety Act because it does not seem to be working or because it imperils online freedom, Ofcom's report proposes to broaden the law's scope. The regulator recommends adding "body stigma content and depression content, currently identified by Ofcom as kinds of non-designated content, to the category of priority content that is harmful to children." Priority content is defined as "content that services must protect/minimise the risk of children in age groups judged to be at risk of harm from encountering." In other words, online platforms could have more reasons to potentially age-gate, block, or avoid publishing out of fear of violating the law.
The report does not address the U.K. government's plans to ban children under the age of 16 from accessing social media, and Ofcom says it will soon publish an assessment of "what highly effective age assurance looks like" for determining whether someone is 16 or older. But if the social media ban unfolds anything like it did in Australia, where kids are easily circumventing it, it is likely to flop, just as the Online Safety Act has.
The post The U.K.'s Online Safety Act Has Been a Failure. Regulators Want To Broaden It Anyway. appeared first on Reason Magazine.
When the 21st Century ROAD to Housing Act was still a work in progress, the Senate briefly inserted a ban on corporate ownership of single-family rental housing so sweeping that it might well have killed off the small but growing build-to-rent sector.
After furious activism by the housing supply boosters, who had been the main advocates for the law's many other provisions, that investor ban was significantly pared back.
The final version of ROAD, which became law in July, prohibits investors who own 350 single-family rental homes from buying new ones. But it also includes a long list of exemptions for large investor purchases of single-family rentals.
The primary exemptions include homes purchased as part of a build-to-rent project and dilapidated homes that the investor spends significant money renovating.
The new restrictions go into effect this coming January. On Thursday, the Treasury Department released a proposed rule that would create definitions for terms that go undefined in the law and clarify the scope of "excepted purchases" of single-family housing that large investors can still make.
Build-to-rent housing that large investors can still buy is defined as a new single-family home that's never been owned by an owner-occupier, is purchased within 18 months of the home receiving a certificate of occupancy, and is occupied by a renter.
Protected "renovate-to-rent" homes are defined as homes that had major building code violations that were fixed by the large institutional buyer and for which the investor spent at least 15 percent of the home's purchase price on improvements.
The rule also provides definitions for rental homes owned as part of a program to boost homeownership, which is another excepted purchase large institutional investors will be allowed to make. Those programs are generally defined as programs in which the renter has the right of first refusal to buy the home and where the rent receives financial support from the homeowner to purchase the home.
Taken together, the clarified exceptions in the Treasury rule still leave a lot of room for large institutional ownership of single-family homes in keeping with the final text of the ROAD to Housing Act. They won't have to sell the homes they already own. They can still add to the supply of investor-owned rental housing through substantial rehabs and build-to-rent projects.
Nevertheless, the Treasury rules will impose numerous paperwork burdens on investors who'll now have to track and report, for example, precisely how much money they've spent renovating a purchased rental house or else risk a huge fine.
Large investors who purchase a single-family home in violation of ROAD are liable for a maximum civil penalty of $1 million per home purchase.
The proposed Treasury rule highlights what a glaring exception the investor restrictions are to the overall spirit of ROAD. Through a variety of means, the law attempts to reduce the regulatory burden on new housing. Now, large investors will have to absorb significant compliance costs just to prove that they're adding new rental housing supply in precisely the right way.
The post Under Proposed Treasury Rule, Corporate Homebuyers Who Don't Track Their Receipts Face $1 Million Fines appeared first on Reason Magazine.
New Yorkers won't be voting on any citywide offices this year, but they do have five ballot initiatives that could shape the city's future more than any politician on this year's ballot. Mayor Zohran Mamdani created a version of the Trump administration's infamous Department of Government Efficiency in New York called the Commission on Government Efficiency (COGE). The plan is for COGE to modernize city operations and accelerate public infrastructure and permitting—in that vein, COGE placed five proposals before voters on the November ballot, largely targeting the bureaucratic processes governing new construction and business activity across the five boroughs.
Questions 1, 2, and 3 on the ballot would end or reduce the use of public hearings in different city review processes. Question 1 would, according to the ballot language, "simplify [the] process to use public space for uses such as ramps, planters and cafes, by removing mandatory hearings and Council disapproval of sidewalk cafes, while maintaining community and Council input." Question 2 would "reduce paperwork for City contractors by authorizing [the] Procurement Policy Board to simplify [the] contractor questionnaire….[And] remove mandatory hearing for required client services report." Question 3 would "simplify review of street safety projects to reduce construction timelines," among other changes. Question 4 is about simplifying permitting.
These policies were not directly introduced by Mamdani, but they reflect a governing philosophy that New York City and other big cities desperately need: a local government that won't allow a small group of organized opponents to obstruct progress for the city at large indefinitely.
Nowhere is the bottleneck against much-needed development clearer than at public review hearings. In theory, a public hearing is democracy at its purest: Every voice is heard. But in practice, it usually becomes a slow-motion filibuster. The most persistent and best-organized opponents get a megaphone, with little to no input from the millions of New Yorkers who would broadly benefit from more housing, better infrastructure, and businesses that can open without getting wrapped in red tape.
The 2026 ballot questions, if approved, would take small steps toward addressing these problems. If they all passed, it wouldn't be a seismic change—a planter here or a parcel of land there. But that's kind of the point: Should routine administrative decisions require another round of formal public review hearings to hold up any change, big or small?
The post Even Under Mamdani, New York City's Ballot Questions Might Cut Red Tape and Public Review Hearings appeared first on Reason Magazine.
"I think capitalism is a good thing, but I think what we need to contend with and be aware of is that a lot of people are not part of it," Tarek Mansour, co-founder and CEO of prediction market platform Kalshi, recently told Reason's Nick Gillespie. "They don't feel like they're part of it. And that's a reality."
Mansour has set out to change that by making it easier for consumers to experience and participate in financial markets. Kalshi's premise is simple: Mansour says the platform matches traders with differing opinions on the outcome of future events, aggregating the "bits and pieces of information" siloed across the country, so long as that information isn't privileged or obtained illegally.
He's up against a rising number of federal and state lawmakers—not to mention the NFL, traditional sportsbooks, casinos, and other regulated gambling operations—who view Kalshi as yet another gambling app. "As of early 2026, more than 20 lawsuits and cease-and-desist actions are pending across the country, filed by state attorneys general, gaming regulators, tribal governments and private plaintiffs," according to the National Conference of State Legislatures. This includes Utah, whose attorney general, Derek Brown, escalated an ongoing legal dispute with Kalshi on Tuesday by filing a complaint against the prediction market in state district court. In his complaint, Brown called Kalshi an "unconscionable and illegal gambling operation." He accused the company of engaging in a "brazen pattern of unlawful conduct."
At the federal level, Bloomberg Law reported last Friday that Sen. Ted Cruz (R–Texas) is preparing to introduce a bill after the midterm elections that would give state and tribal governments authority to regulate sports-related event contracts offered by prediction markets.
Cruz's state-by-state regulatory regime is exactly the kind of scheme Mansour wants lawmakers to avoid. Mansour recently told Reason that, ideally, there'd be a "federal uniform set of rules that apply across all 50 states." Those rules would then "promote and foster" a "multilateral, peer-to-peer idea," where, for example, someone in California, Oregon, or Washington could trade on an event's outcome based on information supplied by someone in Texas.
Data from the Pew Research Center show Kalshi is incredibly popular nationwide; however, the platform is facing headwinds in Congress from the likes of Reps. Alexandria Ocasio-Cortez (D–N.Y.) and James Comer (R–Ky.) and Sens. Adam Schiff (D–Calif.) and John Curtis (R–Utah), who have questioned whether prediction market platforms can indeed self-police insider trading and market manipulation.
Mansour, who calls insider trading an "unfair dynamic that over time dries up liquidity," also argues that prediction markets are uniquely positioned to self-regulate because trades on Kalshi are "fully transparent," making it "easy to flag" suspicious trading patterns. The platform's users play a key role in that work. Mansour says that in February, when convicted fraudster and former Rep. George Santos (R–N.Y.) tried to engage in insider trading, Kalshi received "a hundred whistleblower complaints within a few minutes."
The company's public commitment to rooting out insider trading on its platform may be laudable. Still, it has done little to dispel the prevailing sentiment among state and federal regulators that Kalshi—and prediction market platforms writ large—is indistinguishable from traditional gambling markets.
Indeed, the legal cases against Kalshi are centered on state regulators' belief that the platforms' sports event contracts are the same as the bets offered by legal gambling operations like casinos and sportsbooks. Kalshi has argued that the U.S. Commodity Futures Trading Commission has exclusive jurisdiction to regulate the kinds of contracts it can offer under federal law, preempting states from exercising any gambling authority over prediction markets.
In March, Arizona became the first state to file criminal charges against Kalshi. Arizona Attorney General Kris Mayes accused the company of "running an illegal gambling operation and taking bets on Arizona elections, both of which violate Arizona law." Not everyone in the state shares Mayes' view. One Arizona resident, Zach, a 35-year-old man who makes a living trading sports-related event contracts on prediction markets, tells Reason he'd "move to another state" if Arizona succeeds in driving out prediction markets.
"There's nothing that is excluding other people from the profits that I'm making right now," he says. "I'm under no obligation to bet on Monday Night Football….I'm able to look at all the markets and decide which ones I want; I'm setting a limit order and just saying, 'OK, if I get my price, then hooray.' If I don't, then that's not something that I add to my portfolio."
Of course, not everyone acts as responsibly. Mansour knows that in any competition, including trading, "some people are going to win," while "some people lose." He believes in "individual freedom" and in the idea that "people should be able to choose" which financial markets they engage in, with "some regulations on irresponsible use" so that companies can't target people who exhibit addictive or destructive betting patterns.
The degree to which Kalshi and other prediction market platforms should be regulated will likely be a high priority for federal lawmakers after the midterm elections and in the next Congress. Mansour appears optimistic that there's enough bipartisan support for what he calls "sensible guardrails." He says there's a "big group" on both sides of the aisle that's "actually pro" prediction market platforms. There's reason to be skeptical of Mansour's claim, given that several members of Congress—such as Sen. Elizabeth Warren (D–Mass.), the ranking Democrat on the Senate Banking Committee—have said prediction markets need to be reined in.
In Mayes' case, her antipathy toward prediction markets might cost her at least one vote in Arizona's attorney general race. Zach says that with Mayes waging a legal battle against Kalshi, he'd have to take that into account "hypothetically, if someone knocked on my door tonight and they want me to vote for Kris Mayes to be reelected."
"If I'm not gonna vote on my own behalf, then who is, right?" he says. (Mayes might not be a fan of Kalshi, but with the platform's penchant for accurately predicting election winners, she can take solace in her current trading position, which shows an 84 percent chance she retains her position.)
Mansour says he's a "free market guy" who wants everyone to "have a shot in the competition." To succeed, he'll have to withstand a host of paternalistic government officials hell-bent on controlling financial decisions made by consenting adults.
The post Kalshi's CEO Wants 1 Set of Rules. The States Want 50. appeared first on Reason Magazine.
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