Predictive market companies questioned at Senate Commerce Committee hearing on their booming business

On May 21, according to CoinDesk, the U.S. Senate Commerce Committee held a hearing on the surge in prediction markets, with platforms like Kalshi and Crypto.com facing two hours of questioning. Committee Chairman Ted Cruz criticized cheating incidents involving athletes, which have sown doubt in the minds of fans, citing cases such as NBA players accused of manipulating performance, MLB pitchers suspected of manipulating pitches for money, MLS players intentionally receiving yellow cards, and UFC canceling matches due to suspected match-fixing. Senator John Hickenlooper accused prediction market companies of "preying on young people" through social media advertising. Industry representative Patrick McHenry argued that trading is limited to users over 18, with the average user age being 33. Addiction expert Harry Levant testified that prediction markets are "known addictive products, like heroin." CFTC Chairman Mike Selig stated that the agency is filing lawsuits in states like Minnesota and Arizona to defend its regulatory authority over prediction markets. American Gaming Association President Bill Miller called the CFTC "absolutely incapable" of its regulatory duties and claimed it is harming tribal and state finances. Cruz indicated that the Supreme Court may ultimately need to rule on the issue.