Senator Elizabeth Warren is set to become chair of the Senate Banking Committee in early 2027 and has signaled a push for tighter control of prediction‑market platforms, according to a report from Bitcoin Magazine. The move follows the Democrats’ recent control of both houses of Congress and places Warren at the helm of a committee that oversees banking, housing, the Federal Reserve and cryptocurrency matters.

ETH / USD
Source: CoinGecko. Prices are indicative.

Planned investigation of election‑betting platforms

Warren’s staff outlined a strategy to deploy the committee’s investigative authority to examine prediction‑market sites for possible insider trading and market manipulation, a focus she began addressing before the 2022 midterm elections. In late October, Warren and Republican Senator John Curtis sent letters to Kalshi CEO Tarek Mansour and Polymarket CEO Shayne Coplan requesting information on how the firms block candidates, campaign staff and others with non‑public material information from trading election contracts. The correspondence referenced instances of candidates betting on their own races, including a February 2026 California gubernatorial contest, and cited research suggesting wash‑trading and volume manipulation on Polymarket.

Responses from Kalshi and Polymarket

Kalshi’s enforcement head, Robert DeNault, told Business Insider that the company “proactively blocks candidates and campaign staff from trading to protect market integrity.” Polymarket did not provide a comment to the request, according to the same source. Both firms operate under federal oversight: Kalshi is a designated contract market registered with the Commodity Futures Trading Commission (CFTC), while Polymarket now accesses U.S. users through a CFTC‑registered exchange after previously operating offshore.

Regulatory backdrop and possible outcomes

The CFTC, led by Chairman Michael S. Selig, has been defending prediction‑market platforms against state gambling lawsuits, asserting exclusive federal jurisdiction over event contracts. Warren’s anticipated crackdown could serve as a counterbalance, potentially prompting Senate hearings or new rules that tighten supervision of election‑related contracts. Known for her critical stance on crypto, Warren has also opposed the CLARITY Act market‑structure bill, suggesting her oversight could extend to broader crypto activities, including projects linked to the Trump family.

What to monitor going forward

Observers should watch for any subpoenas, hearings, or legislative proposals that the Senate Banking Committee may issue targeting Kalshi, Polymarket and similar platforms. Developments in CFTC policy and state‑level actions will also shape the regulatory environment for crypto‑native prediction markets.