US House Democrats call for FTC probe into prediction markets
The lawmakers are also asking the FTC for information on whether it has plans to take investigative or enforcement action against prediction markets for possible deceptive practices.
Nine Democratic lawmakers in the US House of Representatives have called on the Federal Trade Commission to launch a probe into how prediction markets are advertising to customers compared to how they present themselves to regulators.
In a statement on Wednesday, US Representatives Kevin Mullin and Gabe Vasquez said the FTC should investigate whether online prediction market platforms are misleading customers by advertising as gambling platforms while telling regulators they are financial tools offering investment products.
Prediction markets allow users to trade contracts on the outcome of future events. They have also been facing scrutiny over insider trading, with Congress launching a probe into Polymarket and Kalshi in May and questioning the companies’ responses to insider-trading incidents on their platforms.