12 Senators Ask the CFTC 9 Burning Trading Market Questions

In a joint effort, 12 US senators are pressing the Trump Administration’s Commodity Futures Trading Commission (CFTC) for answers about how it plans to police insider trading and fraud in prediction markets. 

What Triggered the Idea 

The focus is on platforms like Polymarket, which allow betting on real-world events and, according to the senators, have facilitated illegal gaming nationwide.

The lawmakers’ concerns follow a spike in trading on Polymarket related to Venezuelan President Nicolás Maduro. Just hours before news of Maduro’s capture, a newly created account reportedly invested $30,000 betting on his removal and earned over $436,000 after the announcement. 

Polymarket even offered a contract at 3 am on whether Maduro would be in US custody by the end of the month, with trading volume hitting $1.3 million.

“Suspicious trading on Polymarket’s non-registered exchange raises concerns about the lack of safeguards against insider trading. This improbable spike hours before Maduro’s capture highlights the dangers of unregulated event markets and the potential national security implications.”, the letter said. 

Hard Questions Asked

The senators seeking clarity from CFTC chair Michael Selig are Elissa Slotkin, Richard Blumenthal, Cory Booker, Catherine Cortez Masto, John Hickenlooper, Andy Kim, Jeff Merkley, Alex Padilla, Jacky Rosen, Adam Schiff, Chris Van Hollen, and Peter Welch. 

“As the newly sworn-in Chairman of the Commodity Futures Trading Commission, we want to bring to your immediate attention concerns about insider trading facilitated through event-based derivative contracts,” the senators wrote. 

Their letter includes detailed questions for the CFTC, such as: Do similar contracts exist on regulated exchanges? How does the agency monitor suspicious activity? What steps will ensure Polymarket US complies with all rules once it fully launches? 

The senators also asked how the agency enforces anti-manipulation rules and whether it coordinates with state regulators.

“More Than a Single Market or Platform”

The senators have requested a response by February 9, 2026, emphasizing that Congress expects a thorough and detailed reply.

“This is about more than a single market or platform,” Slotkin explained, adding their purpose is to ensure that the US law can offer protection “against manipulation and insider trading in all financial markets, including these new event-based contracts.”

“It’s critical for market integrity and national security,” Slotkin added.

The letter follows Monday’s letter to Congress, signed by the American Gaming Association and the Indian Gaming Association, asking for a ban on sports event contracts.