In a letter addressed to CFTC Chairman Michael Selig, Senators Adam Schiff (D-CA) and John Curtis (R-UT) sought responses to six questions, including whether or not the CFTC is investigating the allegations and whether the regulator believes it has the authority and expertise to implement the same consumer protections as other regulators.
“Yet with content creators routinely portraying prediction markets as ‘free money,’ there is little basis for treating them differently from gambling,” they added.
The latest report, which alleges creators entered trades into a fake version of Polymarket to drum up interest in the platform, only adds to the intense scrutiny.
“This illustrates why the Commission should be skeptical of claims that sports, entertainment, and other betting-style contracts are materially different from gambling merely because they are offered through event contracts,” they wrote.
“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 added.
The pair, who said they are “concerned” the CFTC is not appropriately enforcing the laws under its purview, requested a response to their questions by July 10.
Of the report in question, a Polymarket representative told the WSJ it would do a comprehensive audit of its promotional materials.
On Friday, The Wall Street Journal reported that the CFTC is in the midst of an "ongoing, extensive investigation" into Polymarket—but it's unclear whether the inquiry is specifically focused on advertising claims.
