All 11 Democratic members of the U.S. Senate Committee on Banking, Housing and Urban Affairs asked Chairman Tim Scott to hold a bipartisan public hearing on prediction markets. The request follows reports that Scott plans to convene a private, Republican-only roundtable with industry executives, including representatives from Kalshi. The senators said security-based prediction markets are a growing part of the financial sector and are exposing more institutional and retail investors to event contracts linked to corporate performance indicators. Such contracts could qualify as security-based swaps subject to Securities and Exchange Commission regulation. They also cited expert warnings about market manipulation and insider trading, as well as early research indicating that profits are concentrated among a small share of users while most participants lose money.
2026-09-23U.S. Senate Committee on Banking, Housing and Urban Affairs
U.S. Senate Committee on Banking, Housing and Urban Affairs Democrats call for public hearing on prediction markets
All 11 Democrats on the U.S. Senate Banking Committee called for a bipartisan public hearing on prediction markets rather than a private, Republican-only industry roundtable. They raised concerns about investor exposure, possible Securities and Exchange Commission jurisdiction, market manipulation, insider trading and concentrated profits.