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. Senator Adam Schiff, a Democrat from California, is leading the group of lawmakers urging the CFTC to stay out of state prediction market lawsuits. A group of 23 Democratic US senators sent a letter Friday to the top federal regulator overseeing prediction markets, urging the agency to avoid weighing in on pending court cases over the legality of offerings on the platforms tied to "sports, war, and other prohibited events." Prediction markets, which sell contracts tied to the outcome of real-world developments, have exploded in popularity over the past year, attracting an increasingly mainstream fanbase eager to wager on everything from geopolitical conflicts to fashion choices to the Super Bowl. As they expanded, the platforms have become a magnet for ethical and legal controversies.