US Senators John Curtis and Adam Schiff have asked the Commodity Futures Trading Commission to investigate Polymarket’s marketing practices after reports that the prediction market platform used staged social media promotions. The lawmakers want the regulator to determine whether the alleged activity broke CFTC rules or federal law.
The bipartisan letter was sent to CFTC Chairman Michael Selig on June 26. It follows reports that Polymarket paid influencers to post videos showing fake trades on websites designed to look like the platform.
Letter cites fake trade videos
The senators referred to reporting that reviewed more than 1,100 Polymarket promotional videos. About 70% of the videos reportedly showed fake bets worth nearly $2 million.
The content was promoted on social media and often featured apparent winning trades. Many of the videos did not disclose that the creators had been paid to promote Polymarket.
Curtis and Schiff wrote that the alleged conduct needed immediate review. They questioned whether the promotions were consistent with a regulated financial market and raised concerns that prediction platforms are being marketed like gambling products.
Senators ask CFTC for details
The letter asks whether the CFTC is investigating Polymarket. It also asks whether the agency believes the reported marketing activity violates federal commodities law or CFTC regulations.
The senators requested information on the CFTC’s rules for advertising and customer promotions by prediction market operators. They also asked what steps the agency would take if it found misleading or deceptive practices.
The CFTC has not publicly confirmed an investigation into the claims. Polymarket has not commented on the senators’ letter or the reported marketing activity.
Scrutiny grows around prediction markets
Polymarket operates event markets linked to politics, sports, economic data, entertainment and other real-world outcomes. The company returned to the US market through a CFTC-regulated entity after previously restricting US users.
The platform and rival operators have faced growing pressure from lawmakers, state gambling regulators and consumer groups. Critics argue that sports and other event contracts work like betting products but do not follow state gambling rules.
Prediction market companies argue that their products are federally regulated event contracts. They maintain that the Commodity Exchange Act gives the CFTC authority over the markets.
CFTC faces more questions
The senators’ request comes as lawmakers ask the CFTC to apply stronger controls to prediction markets. Other members of Congress have raised concerns about insider trading, consumer protection and state authority over sports-related contracts.
The agency is also involved in court disputes with several states over the regulation of event contracts. The claims about Polymarket’s ads add to questions about how prediction market platforms should be regulated.