‘Subject to SEC regulation’ – Senate Democrats push for prediction market oversight

Democrats on the Senate Banking Committee are calling for a bipartisan public hearing on prediction markets. The group, led by Senator Elizabeth Warren, opposed the Republican-only meeting held with Kalsi on the 23rd of September. 

In a letter to Senate Banking Committee chair Tim Scott, the group said, 

It is critical that Congress examine prediction markets on a bipartisan basis in a public hearing – not behind closed doors in a Republican-only, industry-friendly roundtable.

The group added that prediction markets touching corporate performance indicators are security-based and should be “subject to SEC regulation.”

Warren and the team insisted that the panel has a “critical oversight role to play” and called for transparency, including public hearings that involve all committee members. 

The letter was sent to Chair Scott, the same day they held private talks with Kalshi. In his defense, Scott said the meeting was to “better understand the opportunities and challenges presented by securities-linked products.”

He added, 

We discussed the importance of bringing innovation onshore, how investors use these products, ways to protect retail investors, and the regulatory questions Congress should address.