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 now arguing about how the industry itself should be examined. All 11 Democratic members of the Senate Banking Committee have asked Chairman Tim Scott to hold a public hearing on prediction markets, following a private Republican meeting with Kalshi CEO Tarek Mansour. Prediction Markets Are Crossing Regulatory Boundaries The Commodity Futures Trading Commission has traditionally been the federal regulator most closely associated with event contracts. But prediction markets are pushing into territory that does not fit neatly inside one box. Products tied to corporate earnings, securities or other company-specific outcomes could raise questions involving the Securities and Exchange Commission as well. That brings the Senate Banking Committee int...