Senators Warren and Curtis probe Kalshi and Polymarket over election insider trading

Senators Elizabeth Warren and John Curtis have issued a bipartisan inquiry to prediction market platforms Kalshi and Polymarket, requesting answers regarding their ability to prevent election-related insider trading and market manipulation. The senators have requested written responses by November 3, the day of the election.

The inquiry focuses on how these platforms prevent candidates, campaign staff, election officials, and pollsters from using nonpublic information to trade. The senators also raised concerns regarding suspected wash trading on Polymarket and asked for data on how many suspected cases of manipulation have been identified or referred to the Commodity Futures Trading Commission (CFTC) since January 1.

The scrutiny highlights a growing regulatory challenge involving the distinction between centralized platforms like Kalshi, which operate under CFTC oversight, and decentralized platforms like Polymarket, which utilize blockchain-based smart contracts. This distinction creates an observability gap for regulators attempting to link real-world political intelligence with pseudonymous on-chain trading activity.