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

On June 4, according to Cointelegraph, 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 practices are consistent with their statements to regulators. Representatives Kevin Mullin and Gabe Vasquez stated that prediction market platforms claim to regulators that they are financial instruments offering investment products, yet advertise to the public as gambling platforms. This contradictory information could mislead consumers. The representatives have requested a detailed response from the FTC by June 29 regarding whether it plans to take investigative or enforcement action against prediction markets. Prediction markets have recently come under scrutiny for insider trading issues, and Congress launched investigations into Polymarket and Kalshi in May.