Senate Banking Democrats Push for Public Hearing on Prediction Markets

Every Democratic member of the U.S. Senate Banking Committee has asked Chairman Tim Scott to hold a public hearing on prediction markets, arguing that products tied to securities fall within the panel's jurisdiction.

The request came after Republican members of the committee met privately with Tarek Mansour, chief executive of the prediction market platform Kalshi. The Democrats said the subject matter warrants open, on-the-record examination rather than a closed-door discussion.

Oversight questions

In their letter to Scott, the lawmakers said prediction products linked to securities raise questions that sit inside the Banking Committee's oversight responsibilities, and that the industry's regulatory treatment should be reviewed publicly.

The push is the latest sign that prediction markets have become a live issue in Washington, with lawmakers increasingly debating not only how the products should be regulated but also which committee should take the lead in scrutinizing them.

Prediction platforms allow users to take positions on the outcome of events, and their growth has drawn attention from federal agencies and Capitol Hill alike. No date has been set for a hearing, and Scott's office has not indicated whether the request will be granted.

The dispute over venue reflects a broader question for Congress: whether event-based contracts are best treated as financial instruments, gambling products, or a category of their own. Until that is settled, oversight is likely to be split across multiple committees.