Bipartisan Senators Call for CFTC Investigation of Polymarket Over Staged Promotions - Unchained

Senators John Curtis (R-Utah) and Adam Schiff (D-California) wrote to CFTC Chair Michael Selig on Thursday calling for a federal investigation into Polymarket after a Wall Street Journal report alleged the prediction market platform paid social media influencers to film fake winning bets on copycat versions of its website. The bipartisan letter called the allegations “deeply troubling” and asked Selig for written responses by July 10.

The Journal reported on June 20 that it had reviewed 1,105 promotional videos from 10 Polymarket-linked creators covering December through mid-May. Roughly 70% showed trades being placed, with staged wins totaling nearly $1.9 million.

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One video showed a creator winning $100,000 on a bet that President Trump would say the word “McDonald’s” during a specific month. All 50 real accounts that placed that bet lost, the Journal reported. Most creators did not disclose their paid relationship with Polymarket.

The senators asked the CFTC whether it is investigating Polymarket, whether the agency has sufficient authority and resources to regulate prediction market promotions, and whether it intends to preserve state and tribal authority over sports betting. They said presenting gambling-style contracts as financial products does not change the underlying consumer experience, and that the CFTC’s existing jurisdiction over prediction markets should carry equivalent consumer-protection obligations.

The Journal separately reported Friday that the CFTC is already conducting an ongoing, extensive investigation into Polymarket, though the scope and timeline were not disclosed. On the same day, the National Association of Consumer Advocates filed a lawsuit against Polymarket and its CEO Shayne Coplan in the Superior Court of the District of Columbia, accusing the platform of orchestrating a “sweeping deceptive marketing campaign” that targeted college-aged consumers, including through content featuring Logan Paul.

Polymarket began a phased return to the U.S. in December after initially being forced to exit the market by a CFTC enforcement action in 2022.

Related Listen: Is Polymarket’s Oracle Problem Getting Out of Hand? – Uneasy Money