June 9, 2026
U.S. Senator Kirsten Gillibrand (D-NY), along with 15 of her Senate colleagues, called on the Commodity Futures Trading Commission (CFTC) to strengthen oversight and enforcement of prediction markets. This comes as the CFTC considers comments on its proposed rulemaking regarding prediction market regulation. “Financial markets must be fair, transparent, and not tilted in favor of those with privileged access,” said Senator Gillibrand. “The CFTC must implement strong, commonsense guardrails to protect consumers, prevent insider trading, and hold prediction market platforms to high standards of integrity.” The senators wrote to CFTC Chairman Michael Selig: “These markets have a significantly higher proportion of retail participants than traditional derivatives markets, heightening customer protection concerns. At the same time, increasing reports of potential misconduct—including insider trading and market manipulation—have drawn increasing scrutiny from the broader public and from Congress. It is critical that the Commission provide additional guidance and regulation to address these concerns.”
“Given the dynamic and growing nature of the prediction markets, it is crucial that the Commission provide clear guidance to DCMs, DCOs, and other market participants to prevent the listing of event contracts susceptible to manipulation or abuse and to focus the industry’s efforts on listing contracts with clear economic use cases, rather than purely speculative offerings with limited hedging value,” the senators continued. “In addition, the Commission must prioritize its examination and review of DCMs and DCOs to ensure that they have appropriate policies, procedures, and resources to comply with this guidance—and in fact are doing so. Finally, the Commission should work to require DCMs and DCOs to ensure that the terms and conditions of event contracts are clear and designed to minimize potential areas for dispute as to resolution and payout.”
In addition to Senator Gillibrand, the letter was signed by Senators Amy Klobuchar (D-MN), Michael Bennet (D-CO), Richard Blumenthal (D-CT), Lisa Blunt Rochester (D-DE), Cory Booker (D-NJ), Dick Durbin (D-IL), John Fetterman (D-PA), John Hickenlooper (D-CO), Andy Kim (D-NJ), Elissa Slotkin (D-MI), Chris Van Hollen (D-MD), Raphael Warnock (D-GA), Sheldon Whitehouse (D-RI), Ben Ray Luján (D-NM), and Chris Coons (D-DE).
Senator Gillibrand continues to push for regulatory clarity in the rapidly growing prediction market sector. In April, she introduced the Prediction Market Act of 2026 to put regular Americans first by banning elected officials from trading on prediction markets, establishing a transparent regulatory framework, and creating strong safeguards for retail investors.
