U.S. Senate Democrats Call for Public Hearing on Prediction Markets

ChainCatcher report: All Democratic senators on the U.S. Senate Banking Committee sent a letter to Committee Chair and Republican Senator Tim Scott, urging a congressional hearing on prediction markets. In the letter, the Democrats stated that the committee holds a “critical oversight role” in regulating prediction markets and emphasized that Congress should examine prediction markets through open, bipartisan hearings rather than closed, industry-friendly roundtables limited to Republicans. Signatories to the letter include Senator Elizabeth Warren and others. On the same day, Republican members of the Senate Banking Committee met with Tarek Mansour, CEO of the prediction market platform Kalshi. In a statement to The Block, Scott said he convened the meeting with Kalshi to better understand the opportunities and challenges presented by securities-linked products; discussions included keeping innovation in the U.S., how investors use these products, protecting retail investors, and regulatory issues Congress should address. Kalshi did not immediately respond to requests for comment. Currently, the U.S. Commodity Futures Trading Commission (CFTC) asserts primary regulatory authority over prediction markets, but this has faced opposition from states, which claim jurisdiction over sports event contracts. The Senate Banking Committee, however, has jurisdiction over the SEC and is responsible for regulating “securities-linked products” related to prediction markets. Democrats argue that such products—whose payouts are tied to corporate performance metrics—may fall within the SEC’s regulatory scope. Previously, it was reported that Cboe Global Markets is seeking SEC approval to list “all-or-nothing options” tied to corporate earnings results.