TLDR
- All 11 Democrats on the Senate Banking Committee have asked for a public hearing on prediction markets.
- The request followed a private meeting between Republican committee members and Kalshi CEO Tarek Mansour.
- Democrats say products tied to securities fall within the Banking Committee’s oversight role.
- Chairman Tim Scott said the Kalshi meeting covered innovation, retail investor protection and regulatory questions.
- The request does not create a new law or change Kalshi’s regulatory status.
All 11 Democratic members of the U.S. Senate Banking Committee have asked for a public hearing on prediction markets. The request was sent to Committee Chairman Tim Scott.
The call came after Republican members of the committee held a private meeting with Tarek Mansour, the CEO of Kalshi. Kalshi operates a prediction market platform in the United States.
Prediction markets let users trade contracts tied to the outcome of future events. These events can range from sports games to economic data releases.
Democrats Want an Open, Bipartisan Review
The Democrats made their request in a letter dated September 23. They argued that the full committee has an oversight role when it comes to prediction markets.
Their letter framed the issue as one for the whole panel, not just members of one party. The lawmakers said the industry should be examined in public and on a bipartisan basis.
They pointed to products linked to securities as an area that falls within the Banking Committee’s responsibilities.
Scott separately described what the Republican meeting with Kalshi covered. He said the discussion touched on innovation, protection for retail investors, and regulatory questions about securities-linked products.
Questions Over Which Agency Is in Charge
The Commodity Futures Trading Commission has long been the main federal regulator linked to event contracts. The agency oversees derivatives markets in the U.S.
However, some prediction market products are tied to corporate earnings, securities, or other company-specific outcomes. Contracts like these could also raise questions for the Securities and Exchange Commission.
That overlap is what brings the Senate Banking Committee into the discussion. The committee handles oversight matters related to securities and financial markets.
Prediction platforms have been expanding beyond sports. They now offer contracts on economic releases, corporate events, politics, and financial market outcomes.
At the same time, several states continue to challenge some sports event contracts. Federal regulators are also still debating where their authority begins and ends.
Depending on the event that decides the payout, a single contract can look like a derivative, a gambling product, or something similar to a securities-linked option. This has made it harder to place the products under one clear set of rules.
The request for a public hearing does not create any new law. It also does not change Kalshi’s current regulatory status.
The September 23 letter remains the latest step in the matter. The decision on whether to hold a public hearing now rests with Chairman Scott.
