US Senators Send Letter to CFTC Over Prediction Markets

A group of Democrats in the U.S. Senate is calling for action on prediction markets.

A group of 23 Senators from the party sent a letter to CFTC Chair Michael Selig regarding concerns about prediction markets. The letter questioned his recent remarks and actions regarding the industry, which do not match those he shared during the nomination process.

“Taken together, it appears that you intend to steer the Commission in a direction that is at odds with the intent of the Commodity Exchange Act, respect for state law and tribal sovereignty, and with the testimony you presented to the Senate Agriculture Committee on November 19, 2025,” the letter reads.

The most significant concern involved Selig’s decision to drop an advisory warning to operators to prepare for market restrictions. The advisory was sent out while the White House was still seeking a new nominee to lead the regulators. It was in response to a growing call from states to restrict and regulate the industry, despite the industry’s support from the White House.

A group of senators is asking Selig to abstain from the legal fight over prediction markets, allowing the courts and Congress to decide the issue.

Little Hope For Action

While 23 Senators joining forces is significant, the lack of Republican support makes the letter unlikely to prompt action. 

At the core of the issue is President Trump’s deep ties to the prediction industry. Both Polymarket and Kalshi are paying his son, while Trump Media plans to launch its own platform. Those financial ties made finding a CFTC head favorable to the industry a high priority, leading them to Selig. 

While states led by Republicans have spoken out against the industry, those in the US Senate may not be willing to go against the White House. That means Selig can likely ignore the letter and continue executing his new plans to protect the controversial industry.