Bennet, Hickenlooper, Klobuchar, Colleagues Urge Oversight of Prediction Markets

 Pursuant to Senate Policy, petitions, opinion polls, and unsolicited mass electronic communications cannot be initiated by this office for the 60-day period immediately before the date of a primary or general election. Subscribers currently receiving electronic communications from this office who wish to unsubscribe may do so here . M About About Michael Legislation News Press Releases Social Media Newsletter Archive Services Priorities Top Issues Child Tax Credit Investing in Colorado Contact Map Español Acerca de Michael Escribe a Michael Prioridades Servicios Visitando D.C. Bennet, Hickenlooper, Klobuchar, Colleagues Urge Oversight of Prediction Markets Denver — Colorado U.S. Senators Michael Bennet, a senior member of the Senate Agriculture Committee with jurisdiction over prediction markets, and John Hickenlooper joined Senate Agriculture Committee Ranking Member Amy Klobuchar (D-MN) and 13 of their colleagues in calling on the Commodity Futures Trading Commission (CFTC) to strengthen oversight on prediction markets to reduce the […] Jun 8, 2026 | Press Releases Denver — Colorado U.S. Senators Michael Bennet, a senior member of the Senate Agriculture Committee with jurisdiction over prediction markets, and John Hickenlooper joined Senate Agriculture Committee Ranking Member Amy Klobuchar (D-MN) and 13 of their colleagues in calling on the Commodity Futures Trading Commission (CFTC) to strengthen oversight on prediction markets to reduce the potential for consumer harm, insider trading, and market manipulation. “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,” the Senators wrote. In addition to Bennet, Hickenlooper, and Klobuchar, Senators Richard Blumenthal (D-Conn.), Lisa Blunt Rochester (D-Del.), Cory Booker (D-N.J.), Dick Durbin (D-IlI.), John Fetterman (D-Pa.), Andy Kim (D-N.J.), Elissa Slotkin (D-Mich.), Chris Van Hollen (D-M.d.), Raphael Warnock (D-Ga.), Sheldon Whitehouse (D-R.I.), Ben Ray Luján (D-N.M.), Chris Coons (D-Del.), and Kirsten Gillibrand (D-N.Y.) signed the letter. The text of the letter is available HERE and below. Dear Chairman Selig: We write to provide comments on the Commodity Futures Trading Commission’s proposed rulemaking regarding prediction markets. The volume of event contracts trading on prediction markets has grown exponentially over the past 18 months, and the number of Designated Contract Markets (DCMs) and Derivatives Clearing Organizations (DCOs) participating in these markets has also increased. 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. 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. Listing of Only Appropriate Event Contracts The explosion in the number and diversity of contracts offered for trading creates challenges for oversight by both the Commission and the various self-regulatory organizations it relies on to oversee the derivatives markets, including both the National Futures Association and the various DCMs and DCOs. Many event contracts offered on Commission-regulated exchanges appear to violate core principles because they are structurally vulnerable to manipulation where outcomes may be influenced or controlled by a limited group of individuals. Other contracts relate to events the outcome of which is already known to one or more persons (or will be known prior to expiration), making them particularly vulnerable to insider trading (for example, mention markets, where traders can bet on whether certa