Bipartisan senators ask CFTC to investigate Polymarket ads

A bipartisan group of U.S. senators has called for a federal investigation into the prediction market platform Polymarket, alleging deceptive advertising practices, while a separate group of Democratic senators is seeking to restrict funding for a related regulatory battle between federal and state authorities.

On June 25, Senators Adam Schiff, a Democrat from California, and John Curtis, a Republican from Utah, sent a letter to Commodity Futures Trading Commission Chairman Michael Selig urging an investigation. The request follows a Wall Street Journal report alleging Polymarket hired college-age influencers to post videos promoting fabricated trading wins. The report stated the ads depicted nearly $900,000 in cumulative profits, while the same positions on the actual platform would have resulted in over $166,000 in losses. The senators allege influencers were paid up to $3,000 per month and instructed not to disclose the payments, potentially violating Federal Trade Commission rules.

The lawmakers asked the CFTC to determine by July 10 whether it will open a formal probe. They also questioned whether the agency has sufficient authority, expertise, and resources to provide...