A group of Democratic lawmakers, led by Oregon Sen. Jeff Merkley, sent a letter to the Commodity Futures Trading Commission on Thursday urging it to exercise its authority and impose greater oversight of prediction markets.
The letter called on the federal agency to address “the rapid erosion of integrity” within prediction market platforms like Kalshi and Polymarket, according to CNBC.
The lawmakers wrote, “We strongly encourage you to use your authority to preserve the intent of prediction markets, and congressional intent behind the Commodity Exchange Act, by issuing a rule that prevents insider trading and corruption in the market and prohibits event contracts on the outcome of elections, war and military actions in the US or abroad, sports, and government actions without a valid economic hedging interest.
