A bipartisan pair of US senators is demanding a federal investigation into prediction market platform Polymarket. Republican Senator John Curtis and Democratic Senator Adam Schiff sent a letter to Commodity Futures Trading Commission Chair Mike Selig, urging a probe into reports of deceptive marketing.
The letter follows a Wall Street Journal report that Polymarket paid social media influencers to film fake trades on websites resembling its platform. The Journal's review of over 1,100 videos found 70% featured fake bets totaling nearly $2 million. Many creators did not disclose they were paid.
"If accurate, these allegations are deeply troubling and demand immediate scrutiny," the senators wrote. They expressed concern about the CFTC's ability to regulate the booming prediction market sector, which sees billions in monthly volume.
Reports indicate the CFTC is already conducting an extensive investigation into Polymarket. A Polymarket spokesperson said the company is auditing its promotional content for compliance. The company declined to comment on the senators' letter or the reported investigation.
The senators have asked Selig for written answers by July 10 on the investigation's status, the legality of the advertising, and whether the CFTC has adequate resources. They argue the platforms are effectively promoting gambling and that their contracts are not in the public interest.