Senate Democrats call for public hearing on prediction markets

Eleven Democratic members of the Senate Banking Committee have requested Chair Tim Scott to hold a public hearing regarding the rise of prediction markets. Led by Senator Elizabeth Warren and Senator Catherine Cortez Masto, the group seeks to examine the impact of these markets on consumers and the broader financial system.

The request follows reports of private meetings between Republican committee members and executives from Kalshi, a prediction market platform. Lawmakers are specifically concerned with contracts tied to corporate earnings, suggesting such products may function as security-based swaps that fall under the jurisdiction of the Securities and Exchange Commission (SEC).

According to data from the Pew Research Center, Kalshi and Polymarket reached a combined global trading volume of approximately $53 billion in July. The senators aim to use a public session to question industry participants on market integrity, consumer exposure, and the specific financial products being offered to investors.