Two senators are demanding answers from the Commodities Futures Trading Commission after a Wall Street Journal report alleged that Polymarket staged $1.9 million in fake bets as part of a marketing push.
Senators Adam Schiff (D-CA) and John Curtis (R-UT) sent a letter to CFTC Chairman Michael Selig with six specific questions. They want to know whether the agency is investigating, and whether it actually has the authority to offer the same consumer protections as other financial regulators.
The letter points out a contradiction. The CFTC has repeatedly claimed regulatory authority over prediction markets and event contracts, yet content creators routinely portray these platforms as “free money.” The senators argue there’s little basis for treating them differently from gambling.
“With promises of fast money, influencer marketing, social media virality, and a deliberate blurring of what is real and what is staged, it is unsurprising that Americans view purchasing event contracts on prediction markets as much closer to gambling than investing,” they wrote.
Polymarket has been under regulatory pressure all year. Several states have accused prediction market platforms of running illegal gambling operations, and separate insider trading allegations have surfaced. A Polymarket representative told the WSJ the company would conduct a comprehensive audit of its promotional materials.
The WSJ also reported Friday that the CFTC has an “ongoing, extensive investigation” into Polymarket, though it’s unclear whether that probe specifically targets advertising practices. The senators asked for responses by July 10.
