Senate Democrats press CFTC chair on prediction markets

The Hill

by Max Rego

February 24, 2026

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Senate Democrats press CFTC chair on prediction markets

Senate democrats have called for clarity from the cftc chair on prediction markets following a letter sent earlier this week. democratic senators, including richard blumenthal, cory booker, and adam schiff, expressed concerns about the potential risks associated with these markets, which allow users to trade outcomes based on events like elections or economic shifts. the lawmakers urged michael selig to outline his stance on how prediction markets should be regulated under existing financial laws. prediction markets have gained attention for their ability to reflect real-time public sentiment and market trends, but they also raise questions about transparency, accountability, and potential misuse. the senators highlighted concerns over manipulation, fraud, and the impact of these markets on traditional financial systems. they emphasized the need for clear guidelines to ensure stability and prevent exploitation. the cftc, which oversees derivatives and other financial instruments, has historically regulated similar markets. however, the agency’s stance on prediction markets remains unclear. in their letter, the senators asked selig to provide a detailed explanation of how these markets align with existing regulations and whether new oversight measures are necessary. they also requested a timeline for the cftc’s response. this issue is particularly relevant as prediction markets gain popularity among investors and traders. critics argue that without proper regulation, these platforms could pose significant risks to both individual users and the broader financial system. supporters, however, view them as tools for market efficiency and public engagement. the senators’ push for clarification underscores the ongoing debate over how to balance innovation with regulatory oversight in the evolving landscape of financial technology. their efforts aim to ensure that prediction markets operate responsibly while maintaining accountability and protecting consumers

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Originally published on The Hill on 2/24/2026