Senators Urge Top Regulator to Stay Out of Prediction Market Lawsuits

As prediction market platforms like Polymarket and Kalshi battle regulators in court, Senate Democrats are urging the CFTC to avoid weighing in, escalating a broader fight over the burgeoning industry.

The move comes as the CFTC has been considering whether to regulate prediction markets, which allow users to bet on the outcome of events such as elections and sporting events.

In a letter to the CFTC, Senate Democrats argued that the agency should not get involved in the lawsuits, citing concerns about the potential impact on the industry.

"We urge the CFTC to exercise restraint and avoid taking any actions that could harm the development of this innovative industry," the letter read.

The letter was signed by several Senate Democrats, including Senator Kirsten Gillibrand of New York and Senator Elizabeth Warren of Massachusetts.

The CFTC has been under pressure from lawmakers to regulate prediction markets, which have been criticized for their potential to facilitate illegal activities such as insider trading.

However, proponents of the industry argue that it has the potential to provide valuable insights and predictions about future events.

The debate over regulation has been ongoing for several years, with some lawmakers calling for stricter rules and others advocating for a more hands-off approach.

The CFTC has not yet responded to the letter, but the move is likely to escalate the debate over regulation.

Sources

[3] Senators Urge Top Regulator to Stay Out of Prediction Market Lawsuits