Crypto's Crystal Balls: Dems Demand the Senate Stop Whispers and Hold a Public Hearing 🎤

All Democratic senators on the Senate Banking Committee have signed a joint letter to Chair Senator Tim Scott requesting a public hearing on prediction markets, citing a Republican-only roundtable with Kalshi executives that drew criticism over its closed-door format. Ranking member Senator Elizabeth Warren led the letter, which pointed to reports that Scott had organized the roundtable exclusively with Republican committee members.

The letter referenced the reported attendance of Kalshi executives and urged a public proceeding, stating: "It is important for the Senate Banking Committee to hold a public hearing about how these markets are impacting consumers and our financial system." It also noted that the roundtable had been arranged without bipartisan consultation on the matter.

The closed session, first reported by Punchbowl last week, took place on Tuesday between Republican senators and Kalshi CEO Tarek Mansour, according to The Block. No public readout or list of additional attendees has been disclosed, and Kalshi did not immediately respond to requests for comment on the meeting's contents.

The legislative push comes as prediction markets have drawn increased federal attention, with platforms such as Kalshi and Polymarket offering contracts on elections, economic data and other events. Lawmakers in both chambers have raised questions about oversight, market manipulation and the extent to which event contracts fall under the jurisdiction of the Commodity Futures Trading Commission or state regulators.

Democrats' request adds prediction markets to a growing list of digital-asset topics Senate Banking Democrats have pushed into public hearings, and the committee has not yet publicly scheduled a hearing on the matter. The push underscores ongoing partisan friction over how Congress approaches emerging crypto-adjacent sectors as regulators and enforcement actions continue to evolve nationwide.