US House Democratic lawmakers call for FTC investigation into prediction market advertising

Odaily Planet Daily News: Nine Democratic members of the U.S. House of Representatives have called on the Federal Trade Commission (FTC) to investigate prediction markets, reviewing whether their advertising claims are consistent with statements made to regulators. Representatives Kevin Mullin and Gabe Vasquez stated that prediction market platforms, while claiming to be financial instruments offering investment products to regulators, advertise to the public as gambling platforms. This conflicting information could mislead consumers.

The lawmakers have requested that the FTC 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 for insider trading issues, and Congress initiated investigations into Polymarket and Kalshi in May. (cointelegraph)