Prediction markets took over the internet — now Congress wants to rein them in

There is fresh interest in Congress to apply new guardrails on prediction markets like Polymarket and Kalshi following the Iran War

ANDREW CABALLERO-REYNOLDS/AFP via Getty Images

The prediction market craze has reached Congress. Among lawmakers in both parties, there is fresh interest in applying new guardrails on a nascent industry where wagers can be placed on the outcome of virtually any event, including regime change overseas.

Cracking down on prediction markets climbed on the list of priorities on Capitol Hill following the start of the U.S.-Israeli war with Iran that led to multiple instances of possible insider trading on Kalshi and Polymarket, two of the most popular platforms. It drove criticism among Democrats in particular, who argued that new regulations were necessary to prevent wartime profiteering using classified information. Democratic Sen. Chris Murphy of Connecticut called it........

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