All 11 Democrats on the U.S. Senate Banking Committee are pressing Chair Tim Scott (R-S.C.) to hold a public hearing on prediction markets, after Republicans held a private meeting with Kalshi CEO Tarek Mansour on Sept. 23, 2026.
In a letter led by ranking member Elizabeth Warren and Sen. Catherine Cortez Masto, the Democrats said the panel has a "critical oversight role to play" and that Congress should examine prediction markets "on a bipartisan basis in a public hearing – not behind closed doors in a Republican-only, industry-friendly roundtable."
Scott said he convened the meeting with Kalshi to better understand securities-linked products, innovation, investor use, retail protections and regulatory questions. "My goal is to ensure that America leads in financial innovation while protecting investors and providing the regulatory clarity these emerging markets need," he said.
The lawmakers highlighted contracts tied to corporate performance as potentially falling under SEC oversight as security-based swaps. Their request comes as Cboe Global Markets has asked the SEC about listing "all-or-nothing options" tied to companies' earnings results.
Meanwhile, the Commodity Futures Trading Commission has asserted a leading role over prediction markets, while states argue over sports event contracts. New Jersey has asked the Supreme Court to review a ruling favoring Kalshi.
The senators cited Pew Research Center data showing Kalshi and Polymarket combined global trading volume rose to about $53 billion in July 2026 from less than $5 billion in September 2025, before easing to around $47 billion in August. They also raised concerns about manipulation, insider trading and concentrated losses among retail users.
Kalshi has separately filed proposed rules for stock and ETF perpetual futures with the SEC and CFTC, seeking 23-hour weekday trading and a minimum customer margin of 15.50%.
