Two senators are calling on federal regulators to investigate prediction market platform Polymarket following an investigation alleging the company used deceptive marketing tactics to attract users.
Sens. John Curtis (R-UT) and Adam Schiff (D-CA) sent a letter Thursday to Commodity Futures Trading Commission Chairman Michael Selig, urging the agency to investigate the allegations and reaffirm its regulatory authority over the company.
“The public-facing behavior alleged here does not resemble a sober financial market designed for hedging or price discovery,” the senators wrote. “We remain concerned that the Commission is neither enforcing the law appropriately, nor is equipped to serve as a federal gambling regulator.”
The request follows a Wall Street Journal report alleging Polymarket paid social media influencers to film trades on websites designed to resemble the platform, even though the transactions were not real. According to the report, many creators failed to disclose they were being compensated, some videos used staged or misleading materials suggesting large profits, and overseas workers helped distribute the content to American audiences.
“If accurate, these allegations are deeply troubling and demand immediate scrutiny from the CFTC,” the senators wrote.
The senators argued Polymarket continued using deceptive marketing to target U.S. users through fake websites, staged transactions, undisclosed paid influencers, and viral social media campaigns.
The congressional scrutiny comes as Polymarket faces other legal challenges.
On Friday, a consumer protection organization filed a lawsuit against Polymarket CEO Shayne Coplan and Chief Marketing Officer Matthew Modabber, alleging the company targeted college students with deceptive advertising that encouraged them to place trades while obscuring the likelihood of losing money.
According to the complaint, Polymarket “aimed to attract young people to place bets on their platforms using a method likely to be effective: showing them social media videos of popular and respected young people enjoying a Polymarket platform.” The lawsuit alleges the company instead “used many layers of manipulation to trick college-aged consumers, who suffered significant harms as a result.”
The renewed scrutiny comes amid a broader political fight over prediction markets and who should regulate them.
President Donald Trump has publicly backed the CFTC’s authority over prediction markets, posting on Truth Social that it is “critically important” the agency retain exclusive jurisdiction so the industry can thrive. Trump also criticized lawmakers seeking greater state oversight.
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The issue has drawn additional attention because Trump’s eldest son, Donald Trump Jr., is a strategic adviser and investor in the prediction market platform Kalshi. Trump Jr. reportedly received roughly $300,000 in Kalshi equity when he joined the company in early 2025, a stake that has increased substantially in value following the company’s recent funding round, according to the Financial Times.
Meanwhile, Rep. James Comer (R-KY), chairman of the House oversight committee, launched an investigation last month into potential insider trading involving both Polymarket and Kalshi. Both companies have denied wrongdoing and say they prohibit insider trading on their platforms.