All Democratic members of the U.S. Senate Banking Committee have urged Chairman Tim Scott to hold a public, bipartisan hearing on prediction markets, rejecting what they described as a "closed-door, Republican-only, industry-friendly roundtable." In a formal letter, the Democrats asserted that the committee has critical oversight responsibilities regarding consumer protection, market manipulation, and insider trading risks associated with securities-linked prediction products that may fall under SEC jurisdiction.
The demand came as Republican committee members held a private meeting with Kalshi CEO Tarek Mansour to discuss opportunities and challenges in the sector. Democrats argued that a transparent public review is necessary to properly examine regulatory concerns surrounding these emerging financial instruments rather than conducting industry discussions behind closed doors.
Senate Banking Committee Democrats Demand Public Hearing on Prediction Markets Amid GOP-Kalshi Meeting
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