US House Democrats Call on FTC to Investigate Prediction Market Advertising Practices

Odaily Planet Daily News: Nine Democratic members of the US House of Representatives have called on the Federal Trade Commission (FTC) to investigate prediction markets, reviewing whether their advertising methods are consistent with the representations made to regulatory agencies. Representatives Kevin Mullin and Gabe Vasquez stated that prediction market platforms, while presenting themselves to regulators as financial instruments offering investment products, advertise to the public as gambling platforms. This contradictory information could potentially mislead consumers.

The lawmakers have requested the FTC to provide a detailed response by June 29 on whether it plans to launch investigations or enforcement actions against prediction markets. Prediction markets have recently come under scrutiny due to insider trading issues, with Congress having launched investigations into Polymarket and Kalshi in May. (cointelegraph)