American House Democratic lawmakers urge FTC to investigate prediction market advertising practices

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, examining whether their advertising claims are consistent with how they present themselves to regulators. Representatives Kevin Mullin and Gabe Vasquez stated that prediction market platforms claim to be financial instruments offering investment products when speaking to regulators, yet advertise to the public as gambling platforms. This contradictory information could potentially mislead consumers.

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