Senate Democrats urge Scott to hold public prediction markets hearing

According to The Block, all seven Democratic members of the Senate Banking Committee sent a letter to Chair Sen. Tim Scott on Wednesday. The group, which includes Sens. Elizabeth Warren, Catherine Cortez Masto, Jack Reed, Mark Warner, Raphael Warnock, Ruben Gallego, and Angela Alsobrooks, requested a public session on prediction markets. They stated the panel must fulfill its oversight responsibilities because some of these platforms trade products linked to company metrics, potentially subject to Securities and Exchange Commission rules.

"It is critical that Congress examine prediction markets on a bipartisan basis in a public hearing, not behind closed doors in a Republican-only, industry-friendly roundtable," the letter stated.

On the same day, Scott convened a private meeting with Kalshi and other committee Republicans. In a statement, he explained the group reviewed regulatory clarity, securities-linked products, and safeguards for individual investors.

"We discussed the importance of bringing innovation onshore, how investors use these products, ways to protect retail investors, and the regulatory questions Congress should address," Scott said.