Crypto Prediction Markets Face Tight Scrutiny as Democrats Gain Congressional Control
Prediction markets emerged from the midterm elections with a victory and a looming challenge. Polymarket and Kalshi largely anticipated Democrats’ strong showing, reinforcing claims that trading activity can provide forecasts. Their success, however, may bring tougher scrutiny as Democrats prepare to take a more assertive oversight role in Congress. Federal regulators under President Donald Trump have helped the platforms expand over the past two years. The companies added contracts tied to politics, sports, and financial markets. That growth is likely to face closer examination on Capitol Hill. Senator Jeff Merkley warned that wagers involving elections, armed conflict, political violence, and…





