Lawmakers Challenge Prediction Markets Over Insider Trading

Lawmakers on Capitol Hill are increasingly scrutinizing prediction markets like Kalshi and Polymarket following a high-profile anonymous Polymarket trade in early January and the platforms' role in the 2024 election. Representative Ritchie Torres introduced insider-trading legislation and 12 Democratic senators urged the CFTC to investigate, while firms have expanded surveillance and lobbying. The debate centers on legal jurisdiction, corruption risks, and cultural gambling concerns.