Prediction Markets Face Hearing Call From 11 Senate Democrats
The lawmakers want to question platforms on consumer exposure, market integrity and contracts that could fall under Securities and Exchange Commission rules.
- Eleven Democratic senators, including Ranking member Elizabeth Warren and Sen. Catherine Cortez Masto, urged Senate Banking Committee Chairman Tim Scott on Wednesday to convene a public hearing on prediction markets.
- The request follows reports that Republican committee members planned private discussions with Kalshi executives; Democrats cited concerns regarding potential manipulation and trading by individuals with advance knowledge of outcomes.
- Citing Pew Research Center data, lawmakers noted that 56% of sampled accounts lost money over a six-week period, while only 7% made more than $1,000, pointing to rapid industry growth.
- Democrats argued that contracts linked to company performance could qualify as security-based swaps under Securities and Exchange Commission rules, with the Banking Committee needing to examine how such products are supervised.
- While the Commodity Futures Trading Commission holds primary jurisdiction over prediction markets, Republican committee members met with Kalshi CEO Tarek Mansour on September 23, according to The Block, highlighting the jurisdictional tension.
12 Articles
12 Articles
Prediction markets face hearing call from 11 Senate Democrats
All 11 Democrats on the Senate Banking Committee have asked Chair Tim Scott to hold a public hearing on prediction markets after Republican members met privately with Kalshi’s chief executive. In a Sep. 23 letter, the Democratic members of the…
Senate Democrats Demand Public Hearing On Prediction Markets
TL;DR All 11 Democrats on the U.S. Senate Banking Committee have called for a public hearing on prediction markets. The request followed a private meeting between Republican committee members and Kalshi CEO Tarek Mansour. The lawmakers say securities-linked prediction products could raise issues that fall within the Banking Committee’s oversight responsibilities. Prediction markets are becoming a bigger issue on Capitol Hill, and lawmakers are …
Cryptopolitan
BITRSSSenate Democrats demand public prediction-market hearing after GOP-Kalshi meeting
Every Democrat on the Senate Banking Committee called on Republican Chair Tim Scott on Wednesday to hold a public hearing on prediction markets, the same day committee Republicans met privately with Kalshi CEO Tarek Mansour, according to The Block. The dispute comes as prediction markets move well beyond a niche corner of trading. Combined monthly...
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