Senate Democrats Seek Public Hearing on Prediction Markets

All 11 Democrats on the Senate Banking Committee have asked Chair Tim Scott to hold a public hearing on prediction markets, saying contracts tied to corporate performance may raise questions about investor protection and federal securities oversight. The request followed a private meeting on September 23 between Republican committee members and Kalshi CEO Tarek Mansour. No decision on holding a hearing has been reported. In a September 23 letter, the Democrats called for the full committee to examine the markets in public and on a bipartisan basis. They argued that contracts connected to company performance could fall within the Securities and Exchange Commission’s remit and warrant scrutiny by the Banking Committee, which oversees the SEC. That is the lawmakers’ position, not a determination that the contracts are subject to SEC regulation. Scott said the Republican meeting with Mansour covered securities-linked products, how investors use them, retail-investor protections and regulatory questions for Congress. The meeting and the Democrats’ letter were separate actions on the same day.