Senate Banking Democrats Seek Public Hearing on Prediction Markets

All 11 Democratic members of the Senate Banking, Housing, and Urban Affairs Committee asked Chairman Tim Scott on Wednesday to hold a public hearing on prediction markets, citing their growing effect on consumers and the financial system.

The request, led by Ranking Member Elizabeth Warren, calls for a bipartisan session open to the full committee. It follows a planned Republican-only roundtable that was expected to include Kalshi and CEO Tarek Mansour.

“It is critical that Congress examine prediction markets on a bipartisan basis in a public hearing,” the committee’s Democrats wrote, arguing that the issue should not be handled through a closed industry roundtable.

The letter cited combined monthly global notional trading volume on Kalshi and Polymarket rising from less than $5 billion in September 2025 to about $24 billion in April 2026. It also said individuals traded nearly $12 billion on the two platforms in December 2025, a 400% increase from the previous year.

Democrats said contracts tied to corporate performance could potentially qualify as security-based swaps subject to Securities and Exchange Commission oversight. They also raised concerns about market manipulation, insider trading and concentrated profits among users.

Scott has not announced whether the committee will schedule the requested hearing.