Democrats Seek to Tighten Regulation of Prediction Markets; Kalshi and Polymarket May Face Congressional Investigation

According to TechFlow, on November 9, POLITICO reported that as Democrats win the U.S. midterm elections, prediction market platforms such as Kalshi and Polymarket may face stricter congressional oversight. Democratic Senator Jeff Merkley has called for restrictions on prediction market contracts involving events such as elections, wars, assassinations, and terrorism, and is pushing for related legislation.

Representative Maxine Waters has also pledged to strengthen oversight of prediction market platforms, while Senator Elizabeth Warren previously questioned the legality of election contracts on such platforms and the relevant regulatory mechanisms. Future scrutiny may focus on insider trading, market manipulation, and compliance with state gambling regulations.

Kalshi said that more than 10 investigations involving election-related trading are currently underway; Polymarket said it is willing to work with lawmakers from both parties to develop regulatory rules.

Source: TechFlow