"Senators expressed that prediction-market platforms, including Kalshi and Polymarket, are experiencing a rapid erosion of integrity, urging the CFTC to prevent insider trading and prohibit several broad contract categories."
"The lawmakers argued that election-related contracts create a financial incentive for political insiders to subvert voter intent, while sports-event contracts represent gambling that intrudes on state regulatory authority."
"Sports contracts have dominated trading volume at Kalshi, making up approximately 87% of the $39.7 billion traded on the platform in the year ending February."
A group of congressional Democrats, led by Sen. Jeff Merkley, requested the CFTC to prohibit event contracts in five categories, including sports. The letter was submitted on the last day of the CFTC's comment period for prediction markets. Lawmakers expressed concerns over the integrity of prediction-market platforms like Kalshi and Polymarket, citing risks of insider trading and the potential for political insiders to manipulate election-related contracts. Sports contracts accounted for a significant portion of trading volume on these platforms, raising regulatory concerns.
Read at news.bitcoin.com
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