The U.S. government is tightening its grip on prediction markets! Senators Warren and Merkley have just sent a tough request to the White House.
They’re demanding an explanation of whether government employees have used confidential information to profit on these betting platforms. A notable example is former Trump aide Gabriel Perez, who made over $100,000 by predicting words in a speech, then was heavily fined by the CFTC.
This goes beyond Kalshi and raises alarm bells for the entire prediction market space. Legal pressure is set to increase, especially for fast-growing decentralized projects.
Although the White House says ethics rules are already in place, the senators still want to know whether there have been similar cases and whether sufficient training is provided. The deadline for a response is November 23, 2026—a date worth noting.
This is a clear reminder of the risks and close scrutiny prediction markets face. Could this wave of investigations put prediction DApps in an even tougher spot?
#Crypto #PredictionMarkets
They’re demanding an explanation of whether government employees have used confidential information to profit on these betting platforms. A notable example is former Trump aide Gabriel Perez, who made over $100,000 by predicting words in a speech, then was heavily fined by the CFTC.
This goes beyond Kalshi and raises alarm bells for the entire prediction market space. Legal pressure is set to increase, especially for fast-growing decentralized projects.
Although the White House says ethics rules are already in place, the senators still want to know whether there have been similar cases and whether sufficient training is provided. The deadline for a response is November 23, 2026—a date worth noting.
This is a clear reminder of the risks and close scrutiny prediction markets face. Could this wave of investigations put prediction DApps in an even tougher spot?
#Crypto #PredictionMarkets