Sens. John Curtis, R-Utah, and Adam Schiff, D-Calif., sent a letter to Commodity Futures Trading Commission Chair Michael Selig on Thursday demanding an investigation into Polymarket following reports that the predictions market paid social media creators to stage fake winning bets. The bipartisan call follows a Wall Street Journal report last week that found Polymarket paid dozens of creators to film fake bets worth approximately $1.9 million. The senators raised concerns about the CFTC's ability to regulate prediction markets and whether the agency is enforcing the law appropriately or equipped to serve as a federal gambling regulator.
Wall Street Journal Investigation Reveals Fake Bets Campaign
The Wall Street Journal report last week found that Polymarket paid dozens of social media creators to film themselves placing fake bets, and sometimes even faking wins on replicas of its site. The Journal reviewed 1,105 videos from 10 creators from December 2025 to mid-May. A bet appeared in about 70% of them. None of the wagers, worth about $1.9 million, were real.
Polymarket told the Journal it is "committed to maintaining accurate, fair, and transparent markets" and plans a comprehensive audit of its promotional content. In an email, a CFTC spokesperson said that the agency cannot confirm or deny an investigation. The Wall Street Journal reported on Friday that the CFTC was in the middle of an ongoing investigation into Polymarket, citing a person familiar with the matter.
Polymarket's Regulatory History and 2022 CFTC Settlement
Polymarket came under scrutiny from regulators under the Biden administration. In 2022, the platform settled with the CFTC over offering "event-based binary options," and agreed to pay $1.4 million in fines and block U.S. users. Later in 2024, the Federal Bureau of Investigation seized Polymarket CEO Shayne Coplan's phone and was reportedly facing a Department of Justice investigation over alleged U.S. users.
Prediction markets have ballooned in size over the past year, with Polymarket being valued at $15 billion.
DOJ Arrests Army Soldier for Insider Trading on Polymarket
Insider trading concerns have come into the spotlight in Washington following a bet made by an anonymous Polymarket user who earned more than $400,000 by wagering that Venezuelan President Nicolás Maduro would be removed from power before the end of the month. Prosecutors arrested active-duty U.S. Army Soldier Gannon Ken Van Dyke, 38, who allegedly used confidential information to place that bet.
Senators Demand CFTC Action on State Gambling Authority
In their letter on Thursday, Sens. Schiff and Curtis asked the CFTC whether the agency is investigating Polymarket and whether it will "commit to preserving state and tribal authority over sports betting and casino-style gaming products."
"We remain concerned that the Commission is neither enforcing the law appropriately, nor is equipped to serve as a federal gambling regulator," they said in the letter obtained by The Block. "The Commission should not allow companies to invoke CFTC oversight as a way to avoid state and tribal gambling laws, weaken consumer protections, or promote betting-style products through deceptive campaigns."
As prediction markets have grown, the CFTC has asserted its jurisdiction over the firms, engaging in a battle with states in the process over which regulator oversees sports-related bets. Some lawmakers have raised concerns about whether the agency has enough resources to regulate prediction markets, particularly as they are set to have a larger role in regulating digital assets.
Polymarket did not immediately respond to a request for comment.
FAQ
What did Senators Curtis and Schiff demand from the CFTC on Thursday?
Sens. John Curtis, R-Utah, and Adam Schiff, D-Calif., sent a letter to CFTC Chair Michael Selig on Thursday demanding an investigation into Polymarket following reports that the predictions market paid social media creators to stage fake winning bets worth approximately $1.9 million.
What did the Wall Street Journal investigation into Polymarket find?
The Wall Street Journal reviewed 1,105 videos from 10 creators from December 2025 to mid-May and found that Polymarket paid dozens of social media creators to film themselves placing fake bets. A bet appeared in about 70% of the videos. None of the wagers, worth about $1.9 million, were real.
What was Polymarket's 2022 settlement with the CFTC?
In 2022, Polymarket settled with the CFTC over offering "event-based binary options," and agreed to pay $1.4 million in fines and block U.S. users.
