Senators Adam Schiff (D-CA) and John Curtis (R-UT) sent a letter to CFTC Chairman Michael Selig seeking answers about alleged deceptive marketing by Polymarket, as reported by the Wall Street Journal. The report claimed Polymarket paid for $1.9 million in fake bets to stage marketing campaigns. The senators expressed concern that the CFTC is not adequately enforcing laws or protecting consumers, questioning the agency's authority and expertise to regulate prediction markets differently from gambling. They requested responses to six questions by July 10, including whether the CFTC is investigating and if it can ensure consumer protections. This adds to prior scrutiny over insider trading allegations and state claims of illegal gambling. A Polymarket representative stated the platform would conduct a comprehensive audit of promotional materials. The WSJ also reported that the CFTC has an ongoing investigation into Polymarket, though its scope is unclear.

Key facts

• Senators Schiff and Curtis demand CFTC answers on Polymarket fake bet claims.
• WSJ alleged Polymarket staged $1.9 million in fake bets for marketing.
• Lawmakers question CFTC's ability to regulate prediction markets vs gambling.
• CFTC has ongoing extensive investigation into Polymarket, per WSJ.
• Polymarket says it will audit promotional materials after the report.