Key Takeaways
Every Democrat on the Senate Banking Committee asked Chair Tim Scott on September 23 to hold a public hearing on prediction markets.
The letter landed the same day committee Republicans met privately with Kalshi CEO Tarek Mansour.
Democrats argue contracts tied to company earnings could fall under the SEC, which the Banking Committee oversees.
Every Democrat on the Senate Banking Committee sent a letter on September 23 asking Chair Tim Scott, a South Carolina Republican, to hold a public hearing on prediction markets, The Block reported. Signers included Elizabeth Warren, Catherine Cortez Masto, Jack Reed, Mark Warner, Raphael Warnock, Ruben Gallego and Angela Alsobrooks. The Democrats said Congress should examine these markets in a bipartisan, public setting rather than a closed, Republican-only roundtable with the industry.
That same morning at 10 a.m., committee Republicans met privately with Kalshi CEO Tarek Mansour, a meeting first reported by Punchbowl News. Scott said in a statement that the session covered bringing innovation onshore, how investors use these products and how to protect retail investors.
Why the Banking Committee wants a say
The CFTC has claimed the lead role in regulating prediction markets, and the Agriculture committees in both chambers oversee the CFTC. The Banking Committee oversees the SEC instead. Democrats argue that contracts tied to company performance, such as quarterly earnings, could fall under securities law. Cboe has already asked the SEC about listing all-or-nothing options tied to corporate earnings results, according to Bloomberg reporting from July.
Oversight pressure keeps building
This lands as scrutiny of the sector grows on several fronts at once. WYDE covered the CFTC's investigation into Polymarket earlier this week, and New York's lawsuit calling Kalshi's markets illegal gambling in August. States are still fighting the CFTC over who gets to police sports contracts. The open question now is whether Congress looks at these markets in public or in private. Worth watching.
People Also Ask
Why do Senate Democrats want a prediction markets hearing?
They say the Banking Committee has an oversight role because some contracts tied to corporate earnings may fall under SEC jurisdiction, and they want that review done publicly and on a bipartisan basis.
Who met with Kalshi at the Senate?
Republicans on the Senate Banking Committee, led by Chair Tim Scott, met with Kalshi CEO Tarek Mansour on September 23, 2026.
Who regulates prediction markets in the US?
The CFTC claims primary authority, and the House and Senate Agriculture Committees oversee it. Several states have challenged that authority over sports event contracts.
What are securities-linked prediction markets?
They are contracts that pay out based on company results such as earnings, which could bring them under SEC rules rather than CFTC rules.