Senate Scrutinizes Prediction Markets Amid Cheating Concerns

U.S. Senators grilled prediction market firms like Kalshi and Crypto.com over advertising practices, regulatory disputes, and the potential for cheating in sports and politics. Lawmakers expressed concerns about athletes manipulating performances for bets and marketing that targets young people or problem gamblers. Despite industry assurances on age verification and responsible trading initiatives, critics likened the platforms to addictive products. The Commodity Futures Trading Commission is actively defending its regulatory authority, suing states that attempt to ban prediction markets, asserting its oversight over these growing financial platforms.