U.S. Senate Banking Committee Democrats demand a public hearing on prediction markets

September 24: All Democratic members of the U.S. Senate Banking Committee sent a letter to Committee Chairman Tim Scott, requesting a public hearing on prediction markets, stating that the committee has oversight responsibilities over the relevant markets. On the same day, Scott and Republican members of the committee met privately with Kalshi CEO Tarek Mansour to discuss prediction market products tied to securities, investor protection, and regulatory issues.

Democratic lawmakers believe that some prediction market products tied to corporate performance metrics may fall under SEC jurisdiction, and therefore should be reviewed by the committee in a public, bipartisan format; currently, the CFTC is primarily responsible for regulating prediction markets, but states remain in dispute with it over regulatory authority regarding sports event contracts. (The Block)